2017 (5) TMI 934 - AT - Customs

Law of Estoppel - Law of Merger - Jurisdiction of commissioner - fresh proceedings initiated after final adjudication - import of one Hummer H2 right hand drive each from Dollar Auto Works, Dubai, UAE - undervaluation - Held that - initiation of fresh proceedings against the same importer by way of fresh show cause notice alleging under valuation of the car can neither be appreciated nor be upheld. If the Revenue was of the view that there was undervaluation of the car, the same should have been taken up by the Revenue in the first set of adjudication itself - There is no provision in the Customs Act to initiate fresh proceedings, after the final adjudication has taken place and that too, when the order stand merged with the order of the Higher appellate authority - Law of Estoppel, and law of Merger would apply in such case and repeated adjudication cannot take place each time on a new ground - the present adjudication is beyond the jurisdiction of the Commissioner and the impugned order is not sustainable - appeal allowed - decided in favor of appellant.

Summary

Issues: Alleged failure to fulfill import conditions, confiscation of car, redemption fine, penalty, challenge to tribunal order, under-valuation of car, enhancement of car value, customs duty, penalty, redemption fine, legality of fresh show cause notice, jurisdiction of Commissioner.

Alleged Failure to Fulfill Import Conditions:
The appellant imported a Hummer H2 right-hand drive from Dubai, UAE, but allegedly failed to meet conditions in the Import Licensing Note. This led to confiscation of the car, imposition of redemption fine, and penalty under the Customs Act, 1962.

Challenge to Tribunal Order - First Instance:
The Commissioner's order confiscating the vehicle was challenged before the Tribunal, which upheld the confiscation but reduced the redemption fine and penalty. The High Court later set aside the Tribunal's order, reinstating the Commissioner's decision due to lack of reasoning for the reduction in fines.

Under-Valuation of Car and Subsequent Proceedings:
Subsequently, a show cause notice was issued for under-valuation of the car, proposing an increase in its value. The Commissioner's order enhancing the car's value, customs duty, penalty, and redemption fine was challenged before the Tribunal in the present proceedings.

Legality of Fresh Show Cause Notice and Jurisdiction Issue:
The Tribunal noted that all proceedings related to the car had concluded with the High Court's order, merging with lower authorities' decisions. Initiating fresh proceedings for under-valuation after final adjudication was deemed improper. The Tribunal held that repeated adjudication on new grounds post-finality is not permissible under the Customs Act, citing the principles of Estoppel and Merger. Consequently, the Tribunal found the current adjudication beyond the Commissioner's jurisdiction and set aside the impugned order, granting relief to the appellant.