2008 (12) TMI 171 - HC - Customs

Return to India - Import of Car due to transfer of Residence - Petitioner, who was working and residing abroad, purchased a Volkswagen Beetle Car, and when he returned to India, the Car was also imported. The car was in his possession only for a few months prior to import so that he could not claim the benefit of Transfer of Residence as per the EXIM policy, which enables a person, who has been working and residing abroad, to import the Car subject to certain conditions, one of them being that he had been using it at least for one year prior to the date on which the car was imported Customs department doubted the genuineness of such import - HC refused to interfere into the adjudication matter but directed the department to release the car on furnishing of security and bank guarantee and deposit of fine

Issues:
1. Import of a Volkswagen Beetle Car by a person who was working and residing abroad.
2. Eligibility of the petitioner to import the vehicle under the Transfer of Residence rules.
3. Customs officials declining to clear the vehicle due to possession duration.
4. Writ petition seeking release of the vehicle and refund of demurrage charges.
5. Allegations of ineligibility and doubts on ownership of the imported vehicle.
6. Directions issued by the court regarding the release of the vehicle pending adjudication.

Issue 1: Import of Volkswagen Beetle Car
The petitioner, who was working and residing abroad, purchased a Volkswagen Beetle Car and imported it upon returning to India. However, the customs officials refused to clear the vehicle, citing the petitioner's ineligibility to import it under the Transfer of Residence rules, which require the car to be used for at least one year prior to import.

Issue 2: Eligibility under Transfer of Residence Rules
The main contention revolved around the petitioner's eligibility to import the vehicle under the Transfer of Residence rules. The Customs Department alleged the petitioner's ineligibility and raised doubts about whether the import was actually on behalf of someone else. The court highlighted the need for the Customs Department to ascertain the ownership of the vehicle, stating that it is a matter for adjudication.

Issue 3: Customs Clearance and Writ Petition
The petitioner filed a writ petition seeking the release of the vehicle pending finalization of proceedings by the Customs Department. The court, considering the circumstances, directed the respondents to release the Volkswagen Beetle Car to the petitioner subject to certain conditions, including depositing a fine amount equivalent to what might be imposed upon completion of adjudication proceedings.

Issue 4: Refund of Demurrage Charges
Apart from seeking the release of the vehicle, the petitioner also requested a refund of demurrage charges imposed by the Port Trust. The court made it clear that payment of demurrage charges by the petitioner would not prejudice his contentions, and if found eligible to import the vehicle, the Customs Department would be liable for the charges as demanded by the Port Trust.

Issue 5: Allegations and Ownership Doubts
The Customs Department alleged ineligibility on the part of the petitioner and raised doubts about the ownership of the imported vehicle. However, the court emphasized that the release of the vehicle to the petitioner, pending adjudication, was justified based on the facts and circumstances of the case.

Issue 6: Court's Directions
The court disposed of the writ petition by issuing directions for the release of the vehicle to the petitioner, subject to conditions such as depositing a fine amount, furnishing a bank guarantee, and paying demurrage charges on a provisional basis. The court left the contentions raised by both parties open to be agitated in appropriate proceedings under the Customs Act.

This detailed analysis of the judgment highlights the issues surrounding the import of the Volkswagen Beetle Car, the petitioner's eligibility under the Transfer of Residence rules, the customs clearance process, the writ petition seeking release of the vehicle, allegations of ineligibility and ownership doubts, and the court's directions for the release of the vehicle pending adjudication.

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