ORDER
Jyoti Balasundaram, Member (J)
1. The appellants herein imported from Singapore a consignment of second hand diesel engines and have filed a bill of entry on 4.12.1997, in which they declared the value of Rs. 16, 03,236/-. The importers are trader and not actual users. As per para 5.3 and 5.4 of the Exim Policy 1997-2002 w.e.f. 1.4.1997, import of second hand capital goods are allowed to only actual user, and second hand goods, other than capital goods may be imported in accordance with a public notice or a licence issued in this behalf. Since the goods imported by the party are not capital goods nor are these covered by any public notice or a valid import licence, therefore the import appeared to be in contravention of the Import Trade Control Regulations. The Commissioner of Customs confiscated the goods i.e. 266 pcs. Diesel Engines but allowed redemption of the same on payment of a fine of Rs. 25,76,000/- on the value as loaded on the basis of contemporaneous import cleared from Pune Customs and imposed a penalty of Rs. 2,50,000/-on M/s. Khurana Exports; hence this appeal.
3. None appears for the appellants in spite of notice; hence we heard the Ld. JDR and perused the records.
4. We find that the Commissioner has rightly held that the goods are not capital goods, and that the public notice does not cover the goods in question and further the goods were not covered by a valid import licence; even if the goods are capital goods clearance can be allowed only to actual users, which the appellants are not. The order of enhancement is also correct as it is on the basis of contemporaneous import of identical goods cleared from the same station, therefore we, uphold the confiscation however having regard to the value of the goods namely Rs. 25,86,212/-. We reduce the fine in lieu of confiscation to Rs. 15 lakhs and the penalty to Rs. 1 lakh. But for the above modification, the impugned order is upheld.
5. The appeal is thus partly allowed as above.
(Pronounced in Court)