2012 (3) TMI 171 - HC - Customs

Purchase of the vehicle from a used car dealer in Dubai - on inspection damaged chassis number and corrected was noticed and over the engine number in the engine block, a metal plate was fixed covering the original number and with a new number - adjudicating officer confiscated the car and levied penalty - importer filed appeal before the Commissioner (Appeals)- to set aside the order of confiscation reducing the fine and personal penalty - department as well as importer filed appeals before the Tribunal - Held that - The information given by the authorized dealer that car is 2004 in India of Toyota Motors, Japan that it is of 2004 make has to be accepted as conclusive - uphold the order of the Commissioner confirmed by the Tribunal to release the vehicle on payment of redemption fine and personal penalty, besides import duty payable at the applicable rate - no reduction in personal penalty and modification of redemption fine 2,00,000/- and 1,50,000/- respectively.

Issues:
1. Confiscation of imported vehicle due to tampering of engine and chassis numbers.
2. Personal penalty under Section 112(a) of the Customs Act, 1962.
3. Dispute over the release of the 'Toyota Land Cruiser Car' imported in 2007.
4. Reduction of redemption fine and personal penalty by the Tribunal.

Analysis:
1. The judgment addresses the issue of the confiscation of the imported 'Toyota Land Cruiser Car' due to tampering of engine and chassis numbers. The importer had declared the vehicle as a "2000 model," but discrepancies were found during inspection, including a damaged chassis number and a manipulated engine number. The adjudicating officer levied a personal penalty under Section 112(a) of the Customs Act, 1962, in addition to confiscation. The Commissioner (Appeals) upheld the valuation but set aside the confiscation order, directing release on payment of duty and redemption fine. The Tribunal later modified the redemption fine and personal penalty, leading to the Department filing appeals against this decision.

2. The judgment further discusses the imposition of a personal penalty under Section 112(a) of the Customs Act, 1962. The importer, who was used as a name lender by others for importing the vehicle, admitted to the tampering of chassis and engine numbers. The Department argued for absolute confiscation due to the manipulations done by the importer to make the vehicle appear older than its actual model. Despite the Department's contentions, the court noted that the main ground for absolute confiscation was the lack of clear chassis and engine numbers for registration. The court upheld the order for release on payment of redemption fine and personal penalty, considering the consequences of auctioning the vehicle.

3. Regarding the dispute over the release of the imported vehicle, the judgment highlights that the vehicle was a right-hand drive Toyota Land Cruiser car not suitable for registration in the middle east countries. The importer argued that the vehicle was imported from a used car dealer in Dubai and should be accepted as a 2004 make based on information from Toyota Motors, Japan. The court agreed with the Tribunal's decision to release the vehicle on payment of redemption fine, personal penalty, and import duty, emphasizing the lack of clarity on the vehicle's make and the potential loss to the Department in case of absolute confiscation.

4. Lastly, the judgment addresses the reduction of the redemption fine and personal penalty by the Tribunal. The court opined that no leniency was warranted due to the manipulations that caused delays and harassment for the Department during adjudication. The appeals were partially allowed by restoring the redemption fine and personal penalty to their original amounts set by the Commissioner and adjudicating officer. The Writ Petition filed by the importer was allowed, directing the immediate release of the vehicle upon payment of the specified amounts.

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