Cce Vs. Kay Prompt Software P. Ltd.

2. the revenue filed this appeal against order-in-appeal passed by the commissioner (appeals). the brief facts of the case are that the respondents made import of second-hand computers. the adjudicating authority confiscated the goods on the ground that the second-hand goods requires special import licence and ordered release of the goods on payment of redemption fine of rs. two lakhs and personal penalty of rs. 50,000 was also imposed. on appeal filed by the present respondents, the commissioner (appeals) reduced the redemption fine to rs. 40,000 and set aside the penalty.3. the contention of the revenue is that the appellant contravened the provision of import export policy by importing second-hand goods which requires special import licence. therefore, the reduction in redemption fine and setting aside of the penalty is not sustainable.4. the contention of the respondent is that they are engaged in the manufacture of software development and the imported computers are to be used for service of schools. therefore, these are capital goods for which no import licence is required.5. i find that in adjudication order, it is specifically mentioned that the goods are more than 10 years old. therefore, if the contention of the respondent is accepted that these are capital goods then these are prohibited as per exim policy.6. the adjudicating authority in the adjudication order specifically mentioned regarding the condition of computer system that these are completely outdated goods and used one. keeping in view the facts and circumstances of the case i find no infirmity in the impugned order whereby the redemption fine was reduced to rs. 40,000. however, as the respondents imported prohibited goods, therefore, they are liable for penal action. keeping in view the condition of the goods imported by the respondents, the respondents are liable to pay penalty of rs. 20,000 under section 112 (a) of customs act. the appeal is allowed as indicated above.