2008 (10) TMI 555 - AT - Customs

Summary

Issues:
1. Valuation of imported cars under Transfer of Residence facility.
2. Violation of 'no sale' condition in Import Policy.
3. Appeal against lifting of 'no sale' condition and acceptance of invoice value.
4. Consideration of fine, penalty, and confiscation in relation to violation of Import Policy.

Valuation Issue:
The appeals involved the import of cars under the Transfer of Residence facility, with the Revenue challenging the valuation and Import Policy violations. The original orders confiscated the cars due to mis-declaration of value and Import Policy breaches. The Commissioner (Appeals) upheld the invoice value, following Tribunal decisions. The Tribunal, citing precedent, upheld the invoice value in the absence of specific circumstances justifying deviation from it.

'No Sale' Condition Violation:
The 'no sale' condition under the Import Policy prohibits selling imported cars within one year of import. The Commissioner (Appeals) lifted this condition due to confiscation and penalties, deeming it unfair post-penalties. The reasoning cited constitutional rights and balancing post-importation restrictions against trading rights. The Tribunal concurred with lifting the condition, considering it meaningless post-confiscation and penalties.

Appeal Against 'No Sale' Condition and Invoice Value:
The Revenue contested the lifting of the 'no sale' condition and acceptance of invoice value by the Commissioner (Appeals). The Respondents filed Cross Objections challenging these decisions.

Consideration of Fine, Penalty, and Confiscation:
After considering arguments from both sides, the Tribunal upheld the Commissioner (Appeals)'s decision on the invoice value and 'no sale' condition. The Tribunal dismissed the Revenue's appeal and partially allowed the Respondents' appeal. The violation of the Import Policy, lack of possession of vehicles for a year before arrival in India, justified confiscation, fines, and penalties. The Tribunal upheld the reduction of penalties by the Commissioner (Appeals) and partially allowed the Respondents' appeal while rejecting the Revenue's appeals.

In conclusion, the Tribunal's decision, pronounced on 10-9-2008, upheld the invoice value, lifted the 'no sale' condition post-confiscation, and justified penalties and confiscation for Import Policy violations, partially allowing the Respondents' appeal and rejecting the Revenue's appeals.