9911796707
|
Home
Issues:
Reduction of redemption fine and penalty under Customs Act, 1962 for imported car in violation of PN 202/92-94. Analysis: The appeal before the Appellate Tribunal CEGAT, Madras concerned the reduction of redemption fine and penalty imposed under the Customs Act, 1962 for an imported car found to be in violation of PN 202/92-94. The Ld. Collector (Appeals) had reduced the redemption fine from Rs. 6,75,000/- to Rs. 1,00,000/- and the penalty from Rs. 1,00,000/- to Rs. 25,000. The appellant contended that such reduction defeats the purpose of curbing illegal importation of luxury cars without a valid license. The departmental representative argued that the non-payment for the car abroad was a substantive violation of the PN conditions and warranted no reduction in fines. The respondent's advocate, on the other hand, claimed compliance with all conditions except payment abroad. The Tribunal considered these arguments in light of PN 202/92-94, which mandates payment for imported vehicles abroad among other conditions. The Tribunal analyzed the specific condition under PN 202/92-94 that required payment for the vehicle to be made abroad before the passenger's return to India. The lower authority found that the final payment date constituted the payment for the car, not the advance payment date. The appellant's reliance on the Indian Sale of Goods Act was dismissed as the car was purchased abroad, making the Act inapplicable. The Tribunal noted discrepancies in evidence regarding the car's deliverability and the timing of payments. It emphasized the importance of the payment abroad condition to prevent exploitation of the import scheme by parties in India. The Tribunal disagreed with the lower authority's characterization of the violation as technical and emphasized the serious view required for non-compliance with such conditions. Ultimately, the Tribunal held that justice would be served by fixing the redemption fine at Rs. 5,00,000/- and the penalty at Rs. 50,000/-. It concluded that the reduction in fines by the lower authority was unwarranted given the substantive violation of the payment abroad condition under PN 202/92-94. The appeal of the revenue was allowed based on these findings.
|
