2002 (10) TMI 130 - AT - Customs

Summary

Issues:
1. Whether the car was imported in violation of the Import Policy?
2. Whether the assessable value of the car should be enhanced?

Analysis:
1. The appellant imported a Bentley Arnage, Red Label Saloon and declared an assessable value of Rs. 80,37,848. The Customs Commissioner enhanced the value to Rs. 96,14,469 based on information from the World Car Guide. The appellant argued that the transaction value should be accepted unless there is material to prove otherwise, citing relevant legal precedents. The Tribunal agreed, setting aside the enhancement as there was no evidence to doubt the accuracy of the declared value.

2. The appellant faced confiscation of the car, a redemption fine of Rs. 25 lakh, and a penalty of Rs. 5 lakh for violating the Exim Policy. The appellant claimed ignorance of the restriction on importing new cars only through specified ports, which came into effect after the purchase. The Tribunal acknowledged the violation but reduced the fine and penalty considering the circumstances, imposing a redemption fine of Rs. 1 lakh and a penalty of Rs. 50,000. Ignorance of the law was not accepted as an excuse, but the Tribunal considered the timing of the policy change and importation of the car in its decision.

Conclusion:
The Tribunal ruled in favor of the appellant regarding the assessable value of the car, setting aside the enhancement. However, the violation of the Exim Policy led to the confiscation of the car and imposition of a reduced redemption fine and penalty. The appeal was disposed of with the modified penalties imposed.