2013 (11) TMI 1476 - AT - Customs

Confiscation u/s 111(d) - Penalty u/s 112 - Contravention of the conditions specified in the Import Policy - Cars notimported from place of manufacture - Held that - proving the path of the goods imported is not sufficient to meet the condition that the goods should have been imported from the country of manufacture. It is not for the Tribunal to guess the reason behind the condition and order what would be sufficient compliance with the policy. The Import Policy is formulated having regard to various trade considerations of the country and international obligations. It is not for Tribunal to look into the merits and demerits of the import policy because the Tribunal does not have before it all the facts and constraints that result in a policy. We are also not able to agree with the contention that since the policy has been amended in December 2008, the amended position should be applicable for imports made in 2007. This argument if accepted will also lead to considerable difficulties to the Government in the matter of implementation of import policies from time to time which changes depending on various factors - cars were imported in contravention of the condition that the car should have been imported from the country of manufacture and the cars were rightly confiscated under section 111 (d) of the Customs Act - However, there is no contravention of other conditions - Therefore, penalty is reduced - Decided partly in favour of assessee.

Summary

Issues:
- Import of motor cars in contravention of import policy conditions.
- Compliance with important conditions for import of cars.
- Confiscation of cars under section 111(d) of the Customs Act.
- Redemption fine and penalty imposed on the importers.

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Import of Motor Cars in Contravention of Import Policy Conditions:
The judgment involves three appeals concerning the import of motor cars, specifically Cadillac Escalade and Hummer H2 models, in contravention of import policy conditions. The main issue revolves around the non-compliance with conditions such as importing the vehicle from the country of manufacture, possessing a homologation certificate, and producing a Type Approval certificate/Certificate of Conformity of Production (COP). The cars were confiscated under section 111(d) of the Customs Act due to these violations.

Compliance with Important Conditions for Import of Cars:
The appellants argued that they had complied with the main conditions for importing such cars as specified in the Import Policy. These conditions included the vehicle being Right Hand Drive, having photometry of the headlamps suitable for left traffic, and the speedometer indicating speed in kilometers, among others. They contended that the conditions regarding Homologation Certificate and Type Approval Certificate were impossible to meet, especially for cars manufactured in the USA due to the absence of accredited agencies issuing such certificates.

Confiscation of Cars under Section 111(d) of the Customs Act:
The Revenue argued that the importers failed to comply with the condition that the cars should have been imported from the country of manufacture. They emphasized that shipping routes from the country of manufacture to the final destination do not suffice to meet this condition. The Revenue also defended the confiscation of the cars, asserting that the redemption fine and penalty imposed were reasonable considering the nature of the contravention.

Redemption Fine and Penalty Imposed on the Importers:
The judgment considered the arguments from both sides regarding the redemption fine and penalty imposed on the importers. While the appellants claimed they had no intention to evade customs duty or avoid import regulations, the Revenue maintained that the penalties were justified. Ultimately, the Tribunal partially allowed the appeals, reducing the redemption fine and penalty in each case based on the findings related to the contraventions of the import policy conditions.

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This detailed analysis of the judgment provides insights into the import policy conditions, compliance issues, confiscation of cars, and the imposition of fines and penalties on the importers, as addressed in the legal proceedings before the Appellate Tribunal CESTAT NEW DELHI.