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2015 (12) TMI 853 - AT - CustomsConfiscation of vehicle - non-production of homologation certificate with respect to the car under import is a tedious process and involves dismantling of the car - Held that - There was a requirement of production of homologation certificate in respect of cars imported from abroad and the appellant also undertook to produce the same within a period of six months from the date of import of the car which the appellant failed to comply with and therefore, the adjudicating authority came to the conclusion that the said car is liable to confiscation under Section 111(d) of the Customs Act. The said finding cannot be faulted at all. However, since the car is used by the company in India and there is no commercial consideration attached or involved in the matter, the imposition of fine and penalty has to be minimal. - Appeal disposed of.
Issues:
Confiscation of vehicle for non-production of homologation certificate, imposition of fine and penalty under Customs Act, 1962. Analysis: The appeal challenged an Order-in-Original confiscating a BMW 525 I RHD Limousine car valued at Rs. 15,76,960, with an option to redeem on payment of fine and imposition of penalty under Section 112(a) of the Customs Act, 1962. The appellant argued that the non-production of the homologation certificate was due to the cumbersome process and should not result in harsh penalties. The Revenue contended that the certificate was a requirement under the EXIM Policy, and the appellant failed to fulfill the undertaking made at the time of clearance. The value of the car was considered in justifying the fine and penalty imposed. The Tribunal acknowledged the requirement of the homologation certificate and the appellant's failure to produce it within the stipulated time, leading to the confiscation under Section 111(d) of the Customs Act. However, considering that the car was used in India without commercial intent, the Tribunal deemed the initial fine and penalty excessive. They reduced the fine to Rs. 1.5 lakhs (approximately 10% of the car's value) and the penalty to Rs. 75,000 (approximately 5% of the car's value), emphasizing the minimal nature of the fine and penalty due to the circumstances. In conclusion, the appeal was disposed of with the revised fine and penalty amounts, highlighting the importance of considering the specific circumstances and value of the goods in determining the appropriate penalties under the Customs Act, 1962.
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