2007 (10) TMI 121 - AT - Customs

Car imported Second hand or new Value declared by importer admitted by Comm(A) as fair & acceptable Car found to be new, unused & unregistered on basis of certificate issued by supplier Conditions of import license not complied so taking lenient view fine & penalty are reduced.

Summary

Issues: Classification of imported vehicle as brand new or second hand; imposition of redemption fine and penalty.

Classification Issue: The Commissioner classified a Brand New Toyota Hiace Commuter Car imported by the appellants as second hand based on licensing notes. However, a certificate from the supplier stated that the car became a complete marketable consumer product after alterations in Thailand. The Tribunal found the car to be new, unused, and unregistered, with substantial value addition post alterations. The value declared by the appellants was accepted as fair. The Commissioner acknowledged that similar vehicles were already in use on Indian roads under certain waivers. The Tribunal concluded that the car was sold for the first time in its altered form, justifying a new classification.

Redemption Fine and Penalty Issue: The Tribunal deemed the redemption fine of Rs. 5 lakhs and penalty of Rs. 1 lakh imposed by the Commissioner as excessive and harsh. Considering the circumstances, including the new classification of the vehicle and the value addition, the Tribunal reduced the redemption fine to Rs. 40,000 and the penalty to Rs. 10,000. The Tribunal held that the case warranted leniency to meet the ends of justice. Consequently, the impugned order was modified accordingly, and the appeal by the appellants was disposed of with the revised fines.

This judgment highlights the importance of accurate classification of imported goods and the discretion of tribunals to modify fines and penalties based on the merits of each case to ensure justice is served.