Indian Kanoon - Search engine for Indian Law

NAVIN SINHA, J.

Leave granted.

2. The respondents during October­November, 2016 imported certain consignments of Multi­Function Devices (Digital Photocopiers and Printers) (hereinafter referred to as “MFDs”). The Commissioner of Customs held that the imports were in violation of the Foreign Trade Policy framed under the Foreign Trade (Development and Regulation) Act, 1992 (hereinafter referred to as the “Foreign Trade Act”) and Rule 15(1)(2) of the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 (hereinafter referred to as “Waste Management Rules”). Redemption fine was imposed under Section 125 of the Customs Act, 1962 and the consignment released for re­export only. Penalty was also imposed under Section 112(a) along with penalty under Section 114AA of the Customs Act as also penalty was imposed on the Directors.

4. In the appeal preferred by the Revenue, the High Court held that the MFDs correctly fell in the category of “other wastes” under Rule 3(1)(23) of the Waste Management Rules read with Part B and Part D of Schedule III Item B1110 dealing with used Multi­Function Printer and Copying Machines. Adverting to the provisions of the Foreign Trade Act and the Foreign Trade Policy framed thereunder, it was held that the MFDs were not prohibited but restricted items for import. Section 11(8) and (9) of the Foreign Trade Act provided for confiscation and redemption of goods imported without authorisation upon payment of market value. The order for release of the goods was upheld subject to execution of a simple bond without sureties for 90% of the enhanced assessed value, with further liberty to the Director General of Foreign Trade (hereinafter referred to as “the DGFT”), along with directions.