2008 (5) TMI 48 - AT - Customs

Import of Car from dealer in U.K - On noticing that appellant produced type approval certificate/COP certificate from Service Public Federal, Belgium, not from country of origin i.e. Japan, car was confiscated since impugned certificate was given after complete verification & after checking the vehicle against the stringent conditions laid down in European Union so imposition of fine & penalty is harsh & excessive to meet ends of justice, fine & penalty are reduced

Summary

Issues involved:
1. Confiscation of imported car under Customs Act, 1962.
2. Acceptance of type approval certificate from a different country.
3. Imposition of redemption fine and penalty.

Analysis:
1. The stay application was against an order confiscating a car imported under the Customs Act, 1962. The adjudicating authority confiscated the car under Section 111(d) with an option for redemption on payment of a fine and imposed a penalty. The issue was deemed narrow for final disposal after granting a waiver of pre-deposit.

2. The appellant imported a new car from the UK, which was found to lack a type approval certificate from the country of origin, Japan. The appellant presented a certificate from Belgium, which the authority rejected. The appellant argued that the certificate from Belgium should suffice, citing a similar case judgment. The respondent contended that the certificate did not meet legal requirements due to the car's origin and licensing violations.

3. The car met licensing requirements and was new, imported from a UK dealer connected to the Japanese manufacturer. The key issue was the acceptance of the type approval certificate from Belgium. The tribunal noted that the certificate from an international agency in Belgium, listed in the DGFT Policy circular, was valid despite not being from the country of origin. The certificate was issued after rigorous EU standards verification.

4. Considering all facts, the tribunal found the redemption fine and penalty excessive. It reduced the redemption fine to Rs. 1.00 lakh and the penalty to Rs. 40,000, emphasizing leniency and justice. The impugned order was modified accordingly, directing the release of the car upon payment within three days, concluding the appeal proceedings.

Judgment:
The tribunal granted relief to the appellant, emphasizing the validity of the type approval certificate from Belgium and reducing the redemption fine and penalty to ensure fairness and justice in the case of the confiscated imported car.