2006 (4) TMI 336 - AT - Customs

Summary

Issues:
Violation of ITC Public Notice and misdeclaration of vehicle details leading to confiscation under Customs Act.

Analysis:

Issue 1: Violation of ITC Public Notice
The case involved the appellant purchasing a vehicle with misdeclared details to evade duty, violating ITC Public Notice conditions. The Directorate of Revenue Intelligence (DRI) found discrepancies in the vehicle's model, age, and value, leading to a violation of import restrictions. The vehicle's actual make was 1997, contrary to the declared 1990, and its CIF value was Rs. 11,44,586. The importer failed to meet the possession requirement of one year before import. The appellant challenged the order of confiscation under Section 111(d), (m), and (o) of the Customs Act, claiming to be a bona fide purchaser. However, the Tribunal upheld the confiscation due to the fraudulent clearance of the vehicle.

Issue 2: Misdeclaration and Confiscation
The misdeclaration of the vehicle's model and value was done to circumvent licensing conditions, leading to the vehicle being cleared under false pretenses. The appellant argued that once goods are cleared under Section 47 of the Customs Act, subsequent show cause notices are improper, citing judicial decisions. However, the Tribunal held that in cases of fraud, finality cannot be attached to clearance under Section 47. The order of confiscation under Section 111(d), (m), and (o) was deemed correct due to the fraudulent clearance. The appellant's status as a bona fide purchaser did not absolve liability for wrongful import, as established in previous Tribunal cases.

Conclusion:
The Tribunal rejected the appellant's appeal, upholding the order of confiscation and imposition of a redemption fine of Rs. 5,00,000. The decision was based on the fraudulent clearance of the vehicle, disregarding the appellant's status as a bona fide purchaser. The Tribunal found no fault in the impugned order and upheld the confiscation under the Customs Act.