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Issues:
1. Classification of a vehicle as new or second-hand for customs duty assessment. Analysis: The appeal challenged an Order-in-Appeal that classified a vehicle as not new based on its manufacturing and sale history. The Commissioner upheld the adjudicating authority's decision, leading to the confiscation of the vehicle with a redemption option and a penalty. The Commissioner allowed redemption on payment of a fine and confirmed the penalty. The valuation for assessment was based on Customs Valuation Rules, 1988. The appellant contended that the vehicle should be considered new, not old, for duty purposes. They referenced Notification No. 4 (RE-2001)/1997-2002 defining second-hand or used vehicles. The vehicle was bought by a Dubai dealer directly from the manufacturer, kept in a showroom since 1999, not sold, leased, or registered for use elsewhere. The vehicle was a 1999 model with zero mileage, sold under specific conditions. The Department argued that a vehicle purchased in 1999 and sold in 2001 cannot be deemed new, supporting the departmental view. However, upon reviewing the records, it was found that the vehicle, a 1999 model with zero mileage, was a new car. It was never used, sold, or registered elsewhere before being sold to the appellant. The supplier, a franchise holder of the manufacturing company, confirmed the vehicle's status. The Tribunal concluded that the vehicle was new, not second-hand, setting aside the Commissioner's decision on this matter. The Tribunal upheld the valuation for assessment and the confiscation with a redemption option and penalty, considering them reasonable. In conclusion, the Tribunal determined the vehicle to be new, not second-hand, and directed the duty rate to be applied accordingly. The appeal was partly allowed based on this finding, with consequential relief as appropriate.
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