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Issues:
1. Customs valuation of an imported used Motor car-BMW from Dubai. 2. Confiscation and redemption of the car. 3. Imposition of fine and penalty on the importer. Issue 1: Customs Valuation: The appellant imported a used Motor car-BMW from Dubai, U.A.E, declaring the value as USD 18,000 C&F. However, since the manufacturer's invoice was not produced, the declared value was rejected. The assessable value was then determined under Rule 9 of the Customs Valuation Rules, 2007, at Rs. 18,40,346/-, relying on Parker's Guide. The appellant argued that without circumstances mentioned in Rule 4(2) of the Customs Valuation Rules, 1988, the transaction value cannot be rejected. The Tribunal agreed with the importer, citing the Apex Court's decision in Eicher Tractors Ltd. v. CC, Mumbai, and held that the value declared by the appellant should be accepted as there was no allegation of the purchase invoice being bogus or fabricated. Issue 2: Confiscation and Redemption: The car was confiscated with an option of redemption on payment of a fine of Rs. 3,50,000/-, subject to the applicable rate of duty. The Joint Commissioner of Customs imposed a penalty of Rs. 2 lakhs, which was later reduced to Rs. 3 lakhs and Rs. 1.5 lakhs, respectively. The Tribunal upheld the confiscation for contravention of Section 111(d) of the Customs Act, 1962, as the appellant did not possess the car for the required minimum period of one year. However, since there was no violation of Section 111(m) by misdeclaring the value, the fine was reduced to Rs. 2,00,000/- and the penalty to Rs. 1,00,000/-. Issue 3: Imposition of Fine and Penalty: The appeal was partly allowed by the Tribunal, reducing the fine and penalty imposed on the appellant. The fine was reduced to Rs. 2,00,000/- and the penalty to Rs. 1,00,000/- based on the findings that the appellant did not violate the provisions of Section 111(m) by misdeclaring the value. The Tribunal's decision was pronounced in open court on 31-3-2009. ---
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