2011 (4) TMI 1173 - AT - Customs

Confiscation - import of a new car - import of car from Japan, did not produce the required type approval certificate pleading that in spite of efforts they could not get the same - importer had applied to the accredited agency i.e. Ministry of Land, Infrastructure and Transport, Japan for issue of the type approval certificate/COP, the agency declining to issue a certificate Held that - law cannot ask a person to do the impossible, held that in such a case, the condition of production of type approval certificate cannot be insisted, Commissioner s order confiscating the car and imposing penalty is not sustainable, appeal is allowed

Summary

Issues:
Import of a new car without required type approval certificate from an accredited agency. Confiscation of the car, redemption fine, and penalty imposed by the Commissioner. Applicability of Hon'ble Delhi High Court judgment in a similar case.

Analysis:
The judgment revolves around the import of a new car without the necessary type approval certificate from an accredited agency, leading to the confiscation of the car, imposition of a redemption fine, and penalty by the Commissioner. The appellant failed to produce the required certificate for a car imported from Japan, resulting in the confiscation order. The appellant appealed to the Tribunal, citing a similar case where the Delhi High Court ruled in favor of the importer due to the agency's refusal to issue the certificate. The Tribunal remanded the matter for fresh adjudication in light of the Delhi High Court's judgment.

The appellant argued that the Delhi High Court's ruling should be applied to their case as well, emphasizing that the Ministry of Land, Infrastructure and Transport in Japan declined to issue the certificate, making it impossible to fulfill the condition of production. The Departmental Representative defended the confiscation, highlighting the lack of evidence that the appellant had applied to the accredited agency in Japan for the certificate. The Tribunal carefully considered the submissions and records.

In its analysis, the Tribunal referred to the Exim Policy requiring a type approval certificate from an accredited agency for imported vehicles to comply with ECE regulations. Citing the Delhi High Court's judgment in a similar case, where the agency in Japan refused to issue the certificate due to non-alignment with ECE regulations, the Tribunal applied the principle of Lex non-cogit ad imposibilia, stating that the law cannot demand the impossible. Consequently, the Tribunal set aside the Commissioner's order of confiscation and penalty, allowing the appeal.

In conclusion, the Tribunal found that the Delhi High Court's ruling applied to the present case, where the importer faced impossibility in obtaining the required certificate from the accredited agency in Japan. Therefore, the Commissioner's order of confiscation and penalty was deemed unsustainable and set aside, ultimately allowing the appeal.