1995 (3) TMI 211 - AT - Customs

Summary

Issues:
1. Confiscation of imported car under Customs Act, 1962.
2. Imposition of penalty under Customs Act, 1962.
3. Mis-declaration of year of manufacture and value of the car.
4. Violation of ITC Public Notice 197/91.
5. Appeal against the order of the Collector of Customs, Madras.

Confiscation of Imported Car under Customs Act, 1962:
The appellant's car was confiscated under Sections 111(d) and 111(m) of the Customs Act, 1962, along with a penalty imposed under Section 112(a) of the same Act. The appellant imported the car claiming it was manufactured in 1988, but investigations revealed it was a 1991 model. The appellant submitted fictitious documents, including a false invoice, to evade duty payment. The authorities found discrepancies in the appellant's statements and documents, leading to the confiscation of the car valued at Rs. 6,79,252 and the imposition of a penalty of Rs. 3,50,000.

Imposition of Penalty under Customs Act, 1962:
The appellant was charged with mis-declaration of the car's year of manufacture and value, attempting to evade duty, and violating ITC Public Notice 197/91. The appellant admitted to purchasing the car in 1991, contrary to his initial claims. The appellant's consultant acknowledged the lack of a required license for importing a car with an engine capacity of 2495 CC. The appellant intended to sell the car for profit, further supporting the penalty imposition.

Mis-Declaration of Year of Manufacture and Value of the Car:
The appellant falsely declared the car's year of manufacture as 1988 and undervalued it at Rs. 58,500 Dirhams, despite paying Rs. 70,000 Dirhams for it. The appellant's claim of ignorance regarding the actual year of manufacture was refuted by evidence showing the car was a 1991 model. The appellant's reliance on manipulated documents, including a fictitious invoice, was deemed intentional misrepresentation.

Violation of ITC Public Notice 197/91:
The appellant's import of the car did not meet the conditions specified in ITC Public Notice 197/91, which required the vehicle to be in the importer's use abroad for at least one year before its return to India. The appellant's car was only used for 45 days before shipment to India, resulting in a violation of the notice's provisions.

Appeal against the Order of the Collector of Customs, Madras:
The appellant's appeal contested the confiscation of the car and the penalty imposed. The appellate tribunal upheld the lower authority's decision, emphasizing the appellant's deliberate misrepresentation and attempted evasion of duty. The tribunal reduced the penalty to Rs. 1,25,000 but affirmed the confiscation of the car under the Customs Act, 1962.

This detailed analysis of the judgment highlights the issues of confiscation, penalty imposition, mis-declaration, violation of regulations, and the outcome of the appeal, providing a comprehensive understanding of the legal proceedings and the tribunal's decision.