2014 (6) TMI 545 - AT - Customs

Violation of the EXIM Policy - Confiscation of goods - Redemption fine and penalty - Held that - old car imported with lot of modification and without the Type Approval Certificate/ COP from international accredited agency was in contravention of the import policy. When the car was liable to confiscation and the value according to revenue was Rs. 41,23,379.80 for the peculiar circumstance and factors mentioned above, the value of the car is determined to be at Rs. 41,23,379.80 and duty of Rs. 43,95,269.14 is leviable. Considering that there was mis-declaration and suppression of value of the car, imposing the redemption fine of Rs. 10 lakhs shall be justified. Similarly penalty of Rs. 5 lakhs would also be justified - Following decision of Commissioner of Customs vs. Jaspreet Singh Jolly 2012 (10) TMI 654 - DELHI HIGH COURT - Decided in favour of Revenue.

Summary

Issues: Import of car in violation of EXIM Policy, undervaluation, non-appearance of respondent, determination of assessable value, imposition of redemption fine and penalty.

Issue 1: Import of car in violation of EXIM Policy, undervaluation
The judgment addressed the issue of import of a car in violation of the EXIM Policy and undervaluation. The Commissioner presumed the imported car to be new, leading to the confiscation of the car with a mild redemption fine and penalty. The Committee of Chief Commissioners opined that there was undervaluation and a lack of examination of relevant facts by the Commissioner. The value of the car was determined at Rs. 41,23,379.80, with a duty of Rs. 43,95,269.14 payable by the importer. The judgment highlighted the failure of the respondent to meet approval requirements and the import being from a different place than the country of manufacture, causing a violation of the EXIM Policy. The re-determination of the assessable value was deemed necessary considering various factors such as the change in the drive pattern of the car and the speedometer, as per the licensing note.

Issue 2: Non-appearance of respondent, determination of assessable value, imposition of redemption fine and penalty
Despite several notices to the respondent, there was no appearance, leading to the consideration of the revenue's appeal. The judgment emphasized that the imported old car, with modifications and lacking the Type Approval Certificate, was in contravention of the import policy. The value of the car was determined at Rs. 41,23,379.80, with a duty of Rs. 43,95,269.14 leviable. Due to mis-declaration and suppression of the car's value, a redemption fine of Rs. 10 lakhs and a penalty of Rs. 5 lakhs were imposed. The non-contestation of the appeal by the respondent further strengthened the decision in favor of the revenue. The judgment cited the judgment of the Hon'ble High Court of Delhi in a similar case to guide the decision-making process.

Issue 3: Dismissal of C.O.
The judgment concluded by dismissing the C.O. in view of the disposal of the appeal as discussed above, effectively resolving the legal proceedings related to the case.