2023 (8) TMI 1437 - HC - Customs

Demand duty - car imported by wrongly availing the exemption under Notification No.3/57- seized vehicle - Show Cause Notice issued - execute the bond and also to execute a bank guarantee - HELD THAT - In case the petitioner has sustained loss on account of the alleged fraud by the seller of the car and the dealer the petitioner has to recover the loss from his seller and dealer who facilitated the sale of car to the petitioner. Considering the fact that the imported car is prone to depreciation a direction is given to the respondents to finally assess the imported car to duty and pass final order in the Show Cause Notice dated 08.07.2022 as expedioustly as possible. This writ petition stands disposed of with the above liberty. Consequently connected writ miscellaneous petitions are closed.

Summary

Issues involved: Import of vehicle under Notification No.3/57 dated 08.01.1957, forged Bill of Entry, provisional payment of customs duty, Show Cause Notice, alleged fraud by seller and dealer, assessment of imported car.

Import of vehicle under Notification No.3/57 dated 08.01.1957:
The petitioner purchased a motor vehicle imported under the said Notification, allowing privileged persons to import cars without paying customs duty. However, the Bill of Entry for the imported car appears to have been forged, leading to the seizure of the vehicle from the petitioner.

Provisional payment of customs duty:
An order was passed under section 110A of the Customs Act, 1962, requiring the petitioner to pay a differential tax amount and execute a bond and bank guarantee. The import of the vehicle was found to be contrary to the Show Cause Notice, indicating an attempt to avoid customs duty.

Show Cause Notice and alleged fraud:
The petitioner received a Show Cause Notice and is required to respond to it. In case of any loss incurred due to fraud by the seller and dealer, the petitioner is directed to recover the loss from them. Considering the depreciation of the imported car, the respondents are directed to assess the vehicle and finalize the duty as per the Show Cause Notice promptly.

Conclusion:
The Writ Petition was found to lack merit, and the petitioner was instructed to address the Show Cause Notice. The petitioner was granted liberty to recover any losses from the seller and dealer. A direction was given to assess the imported car promptly due to its depreciation. The writ petition was disposed of with no costs, and related miscellaneous petitions were closed.