Per V.K. Agrawal :

The issue involved in the appeal filed by M/s. Modi GBC Ltd. is whether the Shredder Machines imported by them are restricted goods being consumer goods as decided by the Department or were office equipments used for shredding paper.

2. Briefly stated the facts are that the Appellants imported shredder machines in 1994, the clearance of which was sought under para 22 of the Export Import Policy 1992-97, according to which reimport licence was required for importation of the goods imported did not figure in the negative list. However, the Additional Commissioner, Customs, in order in original dated 24.3.95, confiscated the shredder machines with an option to the appellants to redeem the same on payment of fine of Rs. 50,000/- and imposed a penalty of Rs. 25,000/-, holding that the operating manual indicated shredders in question as 'personal shredders' for shredding the documents; that though the shredders could be used in offices, it did not mean that these are not consumer goods; that as per ITC provisions, fax machines and Photocopier, which are office equipments, were specifically referred as consumer goods/consumer durables under the exclusion clause of th