2002 (7) TMI 621 - AT - Customs

Redemption fine - Car import - Precedent and established practice - Redemption fine - Reasonable expectation of importer - Absolute confiscation - Cars

Summary

Issues:
1. Clearance of a used BMW car under OGL without import documents.
2. Absolute confiscation of the car by the Commissioner of Customs.
3. Grounds of appeal against the confiscation order.
4. Adjudication on the appeal by the Appellate Tribunal.

Detailed Analysis:

1. The appellant filed a Bill of Entry for the clearance of a used BMW car under OGL without import documents, seeking valuation and classification under the Customs Act. The car was examined, and its details were verified. The appellant claimed compliance with relevant notifications and requested release without a show cause notice.

2. The Commissioner of Customs ordered absolute confiscation of the car under Section 111(d) of the Customs Act, valuing it at Rs. 10,75,187 CIF, citing non-compliance with regulations.

3. Grounds of appeal included contentions that the appellant did not contravene Indian regulations, the valuation was unjustified, and the confiscation lacked legal basis. The appellant argued for redemption on payment of a fine based on past practices and legal precedents.

4. The Appellate Tribunal set aside the confiscation order, citing the Commissioner's failure to consider redemption fines and past practices of allowing clearance on fines for similar infringements. Legal precedents emphasized consistency in treatment of imports and the principle of legitimate expectation. The Tribunal remanded the matter for revaluation and determination of fines and penalties, leaving the valuation issue open for further consideration.

In conclusion, the Tribunal's decision highlighted the importance of consistent treatment of imports, the need for proper consideration of redemption fines, and adherence to legal precedents in customs adjudication. The matter was remanded for revaluation and determination of fines, emphasizing the principle of legitimate expectation in administrative decisions.