MEDICO PACKERS PRIVATE LTD Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) JYOTI Balasundaram, Vice-President 1. Vide the impugned order, the Commissioner of Customs has confiscated Automotive Blow Fill Seal Machine under Sections 111(d) and 111(m) of the Customs Act, 1962 with an option to redeem the same on payment of fine of Rs. 15,00,000/- (Rupees Fifteen lacs only) and imposed penalty of Rs. 2,00,000/- (Rupees Two lacs only) on the importer under Section 112(a) of the Customs Act, 1962 on the ground that machine was second-hand/old and used and therefore required import licence for its valid import.

(2.) We have heard both sides. We find that there is no dispute that the machine was used for demonstration to the prospective buyers several hours everyday for a period of one week to show the movement and operation of the machine. In these circumstances, the decision of the Hon'ble High Court of Karnataka in the case of Millipore (India) Private Limited v. Union of India holding that demonstration and exhibition of machinery amounts to its use even if for a shorter time will be applicable. The contention of the importers is that machine was only tested does not help them for use for trial or demonstration to the buyers amounts to use in the light of the judgment cited supra. Further, the argument that, it is only a second-hand machine, which requires an import licence while the goods under import are only old and used and is also second-hand acceptable for the reason that, the Tribunal in the case of Saraswati Repowering Works v. Commissioner of Customs, Mumbai and Office Tec Industries v. Commissioner of Customs, Chennai has equated old and used goods with second-hand goods. Therefore, confiscation of machine is sustainable. However, in the facts and circumstances of the case, we reduce the redemption fine from Rs. 15,00,000/- (Rupees Fifteen lacs only) to Rs. 2,50,000/- (Rupees Two lacs fifty thousand only).

(3.) THE appeal is thus allowed partly.