2013 (4) TMI 718 - AT - Customs

Summary

Issues involved:
The issues involved in the judgment include the valuation of an imported used BMW Mini car, discrepancy in the year of manufacture declared before different authorities, imposition of duty, fine, and penalty, applicability of TR concession, and the liability of a subsequent purchaser in customs duty evasion.

Valuation of Imported Car:
The appellant purchased an imported used BMW Mini car from Mr. Muthuswamy Mooper, which was assessed by Customs at a value of &8377; 3,97,116/- after depreciation. Subsequently, discrepancies were found in the year of manufacture declared before different authorities, leading to a re-determination of value at &8377; 7,37,022/- and a demand for differential duty of &8377; 5,05,421/-.

Imposition of Penalty and Confiscation:
The appellant contested the imposition of penalty under Section 112(b) on the grounds of not being involved in the import transaction. The car was confiscated under Section 111(m) and 111(o) of the FTDR Act, 1992, with penalties imposed on both the original importer and the appellant, the present owner of the car.

Applicability of TR Concession and Confiscation:
The appellant argued against the confiscation under Section 111(o) as no TR concession was extended during import. Discrepancies in the declared year of manufacture were highlighted, with the appellant asserting that he should not be held liable based on the decision in Mohan Meakin Ltd. v. CCE, Kochi, which states that subsequent purchasers should not bear liability if proper enquiry was not conducted.

Grant of Stay:
The Customs Authorities were found to have initiated proceedings without clear authority, leading to a prima facie view that the appellant, as a subsequent purchaser, was not connected to the undervaluation of the car. As a result, the appellant was granted unconditional waiver from pre-deposit of dues and a stay on recovery during the appeal process.