2003 (1) TMI 319 - AT - Customs

Valuation - Second-hand computer monitors - Import policy old and used goods - Import licence

Summary

Issues:
1. Enhancement of value of imported goods
2. Confiscation of goods with redemption fine and penalty
3. Classification of goods as capital goods
4. Requirement of import license for used monitors
5. Imposition of redemption fine and penalty

Analysis:
1. Enhancement of value of imported goods:
The appeal was filed against an Adjudication Order that increased the value of imported goods, confiscated them, and imposed a fine and penalty. The appellant argued that the declared value should be accepted based on previous tribunal decisions. The department justified the enhancement based on past cases and market prices. The Tribunal found that the value was enhanced without proper basis and upheld the transactional value declared by the appellant.

2. Confiscation of goods with redemption fine and penalty:
The Adjudicating Authority had confiscated the goods with a redemption fine and penalty. The appellant contested the confiscation and penalties, arguing that the goods were not liable for confiscation under the Customs Act. The department argued that the goods were unauthorized for import without a valid license. The Tribunal upheld the confiscation but reduced the redemption fine and penalty considering them excessive.

3. Classification of goods as capital goods:
The classification of the imported computer monitors as capital goods was disputed. The appellant claimed that the monitors were capital goods and did not require an import license. However, the Tribunal agreed with the department that computer monitors are not capital goods and require an import license for importation.

4. Requirement of import license for used monitors:
The department contended that used monitors require a valid import license, which the appellant failed to produce. As a result, the goods were deemed unauthorized for import under the EXIM Policy, leading to confiscation under Section 111(d) of the Customs Act.

5. Imposition of redemption fine and penalty:
The Adjudicating Authority imposed a redemption fine and penalty, which the appellant argued against. The Tribunal found the redemption fine and penalty to be excessive and reduced them from Rs. 5 lakhs to Rs. 2 lakhs and from Rs. 70,000 to Rs. 40,000, respectively. The appeal was disposed of with the revised fine and penalty amounts.