1999 (5) TMI 190 - AT - Customs

Summary

Issues Involved:
1. Confiscation and penalty related to the import of a Toyota Crown Car by Shri Harinder Singh.
2. Confiscation and penalty related to the import of a Mercedes Benz Car by Shri Ajaib Singh Sethi.
3. Confiscation and penalty related to the import of a Mercedes Benz Car by Smt. Ravinder Kohli.
4. Penalty on Shri Harinder Singh in relation to the import of the Mercedes Benz Car by Smt. Ravinder Kohli.

Issue-wise Detailed Analysis:

I. Appeal No. C/930/93-B2 by Shri Harinder Singh:

The appeal concerns the absolute confiscation of a Toyota Crown Car and a penalty of Rs. 3 lakhs imposed on Shri Harinder Singh. The car was imported under Notification No. 258/90, which allows duty-free import of motor cars by Indian repatriates from Iraq or Kuwait through the Land Customs Station at Attari, Amritsar. The Customs authorities detained the vehicle based on intelligence reports of forged documents. Upon examination, discrepancies were found in the registration details, leading to a Show Cause Notice alleging contravention of the Imports (Control) Order and Section 11 of the Customs Act. The Collector found that the import was unauthorized and the vehicle was liable for confiscation under Section 111(d) of the Customs Act. The exemption under Notification No. 258/90 was denied on the grounds that the vehicle was not registered in Harinder Singh's name before 31-7-1990 and that his wife had also imported another car, violating the one-car-per-family rule. The appellant contended that the registration and other documents were genuine and that the discrepancies arose due to the chaotic situation during the Iraqi invasion of Kuwait. The Tribunal noted the humanitarian considerations behind Notification No. 258/90 and found that the Collector should have considered the difficulties faced by repatriates. The Tribunal set aside the absolute confiscation and penalty, allowing the appellant to redeem the vehicle on payment of a redemption fine.

II. Appeal No. C/931/93-B2 by Shri Ajaib Singh Sethi:

This appeal involves the absolute confiscation of a Mercedes Benz Car and a penalty of Rs. 50,000/- imposed on Shri Ajaib Singh Sethi. The appellant claimed that he was not concerned with the car and that an agreement for its purchase was signed during a drinking session and canceled the next morning. The Collector found that the appellant had connived with others in the unauthorized import of the car. The Tribunal did not accept the appellant's contention about the cancellation of the agreement, but considering the overall circumstances, reduced the penalty from Rs. 50,000/- to Rs. 10,000/-.

III. Appeal No. 933/93-B2 by Smt. Ravinder Kohli:

This appeal concerns the absolute confiscation of a Mercedes Benz Car and a penalty of Rs. 50,000/- imposed on Smt. Ravinder Kohli. The appellant claimed that the car was validly imported and should have been allowed duty-free under Notification No. 258/90. However, the notification allowed only one duty-free car per family, and her husband had already imported a car. The Tribunal noted that the appellant conceded she could not claim the exemption and reduced the penalty from Rs. 2 lakhs to Rs. 50,000/-. The Tribunal also modified the order of absolute confiscation, allowing the appellant to redeem the car on payment of a redemption fine.

IV. Appeal No. C/932/92-B2 by Shri Harinder Singh:

This appeal involves a penalty of Rs. 50,000/- imposed on Shri Harinder Singh for connivance in the unauthorized import of a Mercedes Benz Car by his wife, Smt. Ravinder Kohli. The Tribunal, considering the overall circumstances, reduced the penalty from Rs. 50,000/- to Rs. 10,000/- but did not drop the penalty altogether.

Conclusion:

All four appeals were disposed of with modifications to the penalties and orders of absolute confiscation. The Tribunal emphasized the humanitarian considerations behind Notification No. 258/90 and the difficulties faced by Indian repatriates during the Iraqi invasion of Kuwait.