2016 (11) TMI 902 - AT - Customs

Confiscation of imported car - imposition of interest and penalty - Valuation - import of car by Embassy of the Democratic Republic of Congo in India - abandonment of ownership subsequently - Held that - The car was imported without any licence. Hence the adjudicating authority has correctly held that the vehicle is liable for confiscation. Since the appellant has accepted the valuation and paid the duty liability and not seriously contesting the valuation, we find that the redemption fine and penalty imposed by the adjudicating authority is disproportionate to the said value - the appeal is disposed of by reducing the redemption fine and the penalty imposed.

Summary

Issues: Valuation of imported car, confiscation, redemption fine, penalty

In this case, the appeal was directed against an order-in-original regarding the valuation of an imported car by an Embassy. The Embassy imported the car from Japan, abandoned ownership, and the car was later purchased by the appellant in India. The adjudicating authority initially ordered confiscation of the car and imposed a redemption fine and penalty. The appellant contested the proportionality of the redemption fine and penalty. The Tribunal noted that the car was imported without the required license, justifying confiscation. However, considering the appellant's acceptance of the valuation and payment of duty, the Tribunal found the redemption fine and penalty to be disproportionate to the car's value. The Tribunal upheld the confiscation but reduced the redemption fine to Rs. 2,00,000 and the penalty to Rs. 50,000, stating that it would meet the ends of justice. Thus, the appeal was disposed of by modifying the redemption fine and penalty.