2008 (7) TMI 229 - AT - Customs

Contention of revenue on point of No sale condition waiver is rejected, because, once the penalties are imposed it means that the respondents are not availing of the TR concessions which enable them to import the car without obtaining licence. Therefore, further conditions of No Sale need not be insisted upon - Since transaction value is available and the circumstances mentioned in Rule 4(2) of CVR are absent, T.V. cannot be rejected, therefore, refurbishing charges are not includible

Summary

Issues:
Multiple appeals filed by Revenue and party regarding import of motor cars through Cochin port under Transfer of Residence facility, involving penalties, redemption fines, and valuation disputes.

Analysis:
1. The cases revolve around the import of motor cars through Cochin port under Transfer of Residence facility, governed by specific conditions for import without a license. Violations of these conditions led to penalties, redemption fines, and disputes over declared values.

2. The Commissioner (Appeals) upheld the imposition of fines and penalties but waived the 'no sale' condition post-importation, which was challenged by Revenue. The Tribunal found the waiver reasonable due to penalties already imposed, rejecting Revenue's appeal on this issue for several cases.

3. Disputes also arose regarding refurbishing charges in some imported cars. The Commissioner (Appeals excluded these charges from the assessable value based on transaction value, following the Eicher case precedent. Revenue's appeal on this issue was dismissed by the Tribunal for specific cases.

4. In one case, a valuation discrepancy was noted, where the respondent claimed a lower value due to a dealer's commission. The Tribunal sided with Revenue, considering the transaction value as the actual amount paid, leading to a partial allowance of Revenue's appeal for valuation adjustments.

5. Another appellant contested penalties and fines imposed for importing a right-hand drive car without possessing it for the required duration. The Tribunal rejected the appellant's argument of impossibility in Dubai, upholding the fines and penalties imposed.

6. In the final judgment, most of Revenue's appeals were dismissed, except for the partial allowance of one appeal for valuation adjustments. The appellant's appeal challenging penalties and fines was also dismissed, maintaining the impugned order.

Conclusion:
The Tribunal disposed of the twelve appeals and cross-objections concerning import violations and valuation disputes, maintaining penalties, fines, and waivers based on the specific circumstances of each case. The judgment clarified the application of import policies and valuation rules in the context of motor car imports, providing a comprehensive resolution to the legal issues raised in the appeals.