2003 (3) TMI 375 - Commission - Customs

Summary

Issues:
Settlement of duty liability under EPCG Scheme - Misuse of scheme by importing high-value cars - Violation of Customs Notification No. 49/2000 - Admission of entire duty liability - Adjustment of paid amount - Grant of immunity - Release of seized cars - Bond and bank guarantee requirements.

Analysis:
The judgment pertains to a case involving the settlement of duty liability under the EPCG Scheme due to the misuse of the scheme by importing high-value cars. The applicants, except one, were represented during the admission hearing where it was revealed that investigations by DRI, Mumbai, showed that the applicants imported cars under EPCG Licences and misused the scheme by not fulfilling export obligations. The investigations highlighted that the cars were imported as capital goods at a concessional rate of customs duty but were not utilized as per the policy, leading to violations of Customs Notification No. 49/2000.

The applicants filed applications for settlement of the case, admitting the duty liability. During the hearing, they expressed readiness to admit the entire demanded duty amount and made specific prayers regarding the payment, adjustment of the paid amount, instalments, release of seized cars, and execution of a bond and bank guarantee. Additionally, one of the co-noticees requested immunity in their application.

The Revenue had no objection to the admission of the case following the applicants' submission of willingness to pay the entire duty amount. The Commission, after reviewing the case records and submissions, accepted the admission of the entire duty liability of Rs. 2,93,61,300/-. The Commission allowed the adjustment of the paid amount, directed payment of the balance in instalments, and outlined conditions for the release of seized cars, including the execution of a bond and a bank guarantee.

In conclusion, the Commission treated the admitted duty liability as Rs. 2,93,61,300/- and allowed the case to proceed under the Customs Act, 1962. The applicants were directed to pay the balance duty amount in instalments, and conditions were set for the release of seized cars. The judgment emphasized compliance with relevant legal provisions and informed all concerned parties about the decision.