Per Justice R.K. Abichandani (for the Bench) :

These appeals are placed before the Larger bench because of a conflict of opinion on the question whether photocopiers are capital goods or consumer goods and whether the import of old and used (second-hand) photocopiers are allowed freely. The said question has been referred by order dated 15.4.2005 in view of divergent views of various Benches of this Tribunal.

2. The appellants of all these appeals were importing various models of used photocopiers. The goods were examined and found to be as per the declarations. Show cause notices came to be issued under Section 124 of the Customs Act on these appellants on the basis that in view of the clarification issued in the Circulars mentioned in the show cause notices, used photocopiers were not importable under paragraph 2.33 of the Hand-book of Procedure to Foreign Trade Policy and they were restricted under para 2.17. It was alleged that since the goods were so restricted for import and the importers did not produce valid import licences, they were liable to be confiscated under Section 111(d) of the said Act read with para 2.17 of the foreign Trade Policy and that the importers were