2008 (7) TMI 165 - AT - Customs

Import of new car manufactured in USA and imported through dealers in Asia non submission of Type approval Certificate violation of import licensing notes - It is undisputed that the vehicle imported by the appellant is new one and since it is an admitted fact that USA do not follow the EEC certificate, the question of providing the same does not arise - held that the findings reached by the adjudicating authority is correct and the car is liable for confiscation

Summary

Issues:
Violation of import licensing notes; Confiscation of imported vehicle; Imposition of penalty; Reduction of redemption fine and personal penalty.

Analysis:
The appeal revolved around the import of a new Hummer H2 RHD car from Thailand, which was manufactured in the USA. The adjudicating authority confiscated the car and imposed penalties on the appellants for violating the condition that new vehicles should be imported from the "country of manufacture" as per Import Licensing Note (2)(II)(iv) of Chapter 87. Additionally, the type approval certificate was not submitted as required by Import Licensing Notes (2)(II)(c)(i) of Chapter 87 of ITC (HS) classification. The authority concluded that the import was in violation of these licensing notes and the Foreign Trade (Development and Regulation) Act, 1992.

The Tribunal referred to a similar case where a Division Bench upheld the confiscation of a car imported from Thailand but deemed the redemption fine and penalty excessive. Following this precedent, the Tribunal directed the provisional release of the car upon payment of duty and a revenue deposit. The pre-deposit of the balance amount of fine and penalty was waived, and recovery stayed.

Considering that the imported vehicle was new and the USA did not follow the EEC certificate, the requirement for the same was deemed unnecessary. The Tribunal upheld the decision of the adjudicating authority regarding confiscation but reduced the redemption fine to Rs. 75,000 and the personal penalty to Rs. 25,000. The reduction was based on the Division Bench's decision and the fact that the car was imported for personal use, ensuring justice was served. The appeal was disposed of accordingly.