2009 (4) TMI 137 - AT - Customs

Valuation of second hand card held that - the only basis for enhancement of the value of the Car is the Parker s Car Book - The appellant has produced on record the invoice issued by the seller of the Car and also the original invoice issued by the dealer of Mitshubishi Motors in the name of Simon Gilliver. Even the original price of the Car is less than the price adopted by the Commissioner in his impugned order. We also note that Commissioner has not doubted the genuineness of the sale deed between the appellant and seller of the Car Simon Gilliver - . In the absence of any evidence to reject the transaction value, we do not find any justification to arrive at the value of the car on the basis of Parker s Car Book Demand of differential duty set aside. Redemption fine and penalty reduced for ITC violation.

Summary

Issues:
1. Dispute over the declared value of an imported second-hand car.
2. Alleged contravention of Import Export Policy 1997-2002 regarding import of second-hand cars.
3. Confiscation of the car, imposition of redemption fine, and penalty.

Analysis:

Issue 1: Dispute over Declared Value
The appellant, a Non-resident Indian in England, imported a second-hand car in Porbandar, declaring its value as GBP-6800. However, authorities proposed a higher value of GBP-27410 based on Parker's Car Book - 1988-97. The adjudicating authority enhanced the car's value, leading to confiscation, redemption fine, and penalty. The appellant argued that the original invoice and sale deed supported the declared value, which was lower than the one proposed. The Tribunal found no evidence to reject the transaction value and set aside the enhancement, negating the differential duty demand.

Issue 2: Contravention of Import Export Policy
Import of second-hand cars under the Import Export Policy 1997-2002 required a specific license, which the appellant failed to produce. This non-compliance led to the confiscation of the car, along with a redemption fine of Rs. two lakhs and a penalty of Rs. one lakh. The appellant acknowledged the violation but sought a reduction in fines and penalties. The Tribunal, acknowledging the violation, reduced the redemption fine to Rs. one lakh and the penalty to Rs. 50,000, considering the appellant's plea and acceptance of under-valuation.

Conclusion
The Tribunal upheld the appellant's argument regarding the declared value of the imported car, setting aside the enhancement based on Parker's Car Book. However, the non-compliance with the Import Export Policy led to the confiscation of the car, with reduced fines and penalties. The appeal was disposed of accordingly, emphasizing the importance of accurate valuation and compliance with import regulations.