2013 (8) TMI 273 - Commission - Customs

Customs duty - Interest Fine - assesse had imported one brand new car at a declared value (CIF) and an assessable value Customs duty was also assessed - Department was of the view that the Type Approval Certificate had not been issued by an accredited agency in the country of manufacture Held that - Differential Customs duty in the case was settled - assesse had already paid the said amount and hence no further liability subsists in this regard - assesse had paid towards interest liability - The accuracy of the interest calculation should be verified by the Revenue and any further amount if payable should be paid - Vehicle was seized and released provisionally to the applicant was found liable to confiscation - The same was ordered to be released on payment of redemption fine- Immunity was granted to the applicant from payment of redemption fine in excess of the above amount. Penalty Prosecution Bank Guarantee & Bond Held that - Penalty was imposed on the applicant and granted immunity from payment of penalty in excess of the amount - assesse was granted immunity from prosecution under the Customs Act - Jurisdictional Commissioner was directed to discharge the bank guarantee and indemnity bond, furnished by the applicant for provisional release of the impugned vehicle, after realizing the above mentioned differential Customs duty, interest, fine and penalty. Immunity u/s 127H Held that - Immunities were granted u/s 127H (1) - Attention of the applicant was also invited to the provision of Section 127H (2) & (3) - The order of settlement shall be void u/s127C (8) - if the Settlement Commission subsequently finds that it had been obtained by fraud or misrepresentation - Order of settlement applied only to the applicant in the case - It does not apply to other noticees to the Show Cause Notice Decided in favor of Assesse.

Summary

Issues Involved:
1. Valuation of the imported Toyota Land Cruiser Diesel-V car.
2. Applicability of Customs duty rate for the car.
3. Eligibility for exemption under Notification No. 21/2002-Cus., dated 1-3-2002.
4. Payment of differential duty and interest.
5. Liability for confiscation, fine, and penalty.
6. Immunity from prosecution.

Issue-wise Detailed Analysis:

1. Valuation of the Imported Car:
The applicant imported a Toyota Land Cruiser Diesel-V car from M/s. Pride City General Trading L.L.C., Dubai, declaring a value of Rs. 24,58,855/- CIF. However, the DRI investigation revealed the actual transaction value to be USD 1,10,000 CIF, equivalent to INR 47,41,000/-. The applicant accepted the revised valuation and paid the differential duty of Rs. 25,82,531/- along with interest of Rs. 1,58,136/-.

2. Applicability of Customs Duty Rate:
The dispute arose over whether the car was "new" or "second-hand." The DRI considered the car as "second-hand" due to ownership changes from Japan to New Zealand and then to the applicant, attracting a higher BCD of 100%. The applicant claimed it was "new," attracting a BCD of 60% under Notification No. 21/2002-Cus. The Commission found the car to be "new" based on its manufacture date and export within three months, thus granting the lower duty rate.

3. Eligibility for Exemption under Notification No. 21/2002-Cus.:
The Commission examined the proximity of relevant dates (manufacture, registration, and export) and concluded that the car was "new." Therefore, the benefit of concessional duty under Notification No. 21/2002-Cus. was extended to the applicant.

4. Payment of Differential Duty and Interest:
The applicant paid the differential duty of Rs. 25,82,531/- and interest of Rs. 1,58,136/-. The Commission directed the Revenue to verify the accuracy of the interest calculation and any further amount payable to be settled within 30 days.

5. Liability for Confiscation, Fine, and Penalty:
The car was liable for confiscation under the Customs Act. The Commission ordered its release on payment of a redemption fine of Rs. 2,00,000/- and imposed a penalty of Rs. 1,25,000/- on the applicant, granting immunity from payment of any excess fine and penalty.

6. Immunity from Prosecution:
The applicant was granted immunity from prosecution under the Customs Act concerning this case. The Commission directed the Jurisdictional Commissioner to discharge the bank guarantee and indemnity bond furnished by the applicant after realizing the differential Customs duty, interest, fine, and penalty.

Order:
The Commission settled the differential Customs duty at Rs. 25,82,531/-, which the applicant had already paid. The applicant was also directed to pay any additional interest if found due. The car was ordered to be released on payment of a redemption fine of Rs. 2,00,000/-, and a penalty of Rs. 1,25,000/- was imposed. Immunity from prosecution was granted, and the bank guarantee and bond were to be discharged upon payment of the due amounts. The order applied only to the applicant, and the Revenue was free to pursue proceedings against other noticees as per law.