2005 (5) TMI 468 - Commissioner - Customs

Summary

Issues:
1. Seizure and confiscation of a motor cycle for alleged illegal importation.
2. Allegation of violation of no sale conditions of a Public Notice.
3. Jurisdictional issue regarding re-opening and re-adjudication of the case by Mumbai Customs.

Analysis:
1. The case involved the seizure of a motor cycle from the premises of the appellants based on specific information. Despite producing evidence of legal importation, including a bill of entry and other documents, the motor cycle was confiscated, and penalties were imposed. The appellants argued that the motor cycle was legally imported and that any discrepancies in the bill of entry were minor errors. The Commissioner found that the motor cycle was indeed legally imported based on verification of the chassis and engine numbers, concluding that the confiscation and penalties were unjustified and showed high-handedness by the department.

2. The department alleged a violation of the no sale conditions of a Public Notice, which would only be applicable if the motor cycle was legally imported. The Commissioner noted that the motor cycle remained in the name of the original importer, and there was no evidence of a sale. The appellant provided documentation showing the motor cycle was held as collateral security, not sold, thus not violating the no sale condition. The Commissioner found the allegation of violation unsubstantiated.

3. The motor cycle was imported through Cochin port, cleared after assessment and payment of customs duty. Even if there were errors in the import documentation, the Mumbai Customs had no jurisdiction to re-open and re-adjudicate the case. The proper procedure would have been to transfer the case to Cochin Customs for review. The Commissioner held that the re-opening and re-adjudication by Mumbai Customs was without jurisdiction. Other contentions regarding the non-applicability of Customs Act provisions were deemed unnecessary as the motor cycle was determined to be legally imported.

In conclusion, all three appeals were accepted, and the original order of seizure and confiscation was set aside based on the findings that the motor cycle was legally imported and the allegations of violations were not substantiated.