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2022 (11) TMI 605 - AT - CustomsProvisional release of seized goods - mandate to produce the certificate insisted upon as condition for provisional release from among the prescriptions in the licencing notes pertaining to imported vehicles - HELD THAT - The Tribunal in EXCELLENT BETELNUT PRODUCTS PRIVATE LTD VERSUS PRINCIPAL COMMISSIONER OF CUSTOMS, NAGPUR 2022 (3) TMI 1326 - CESTAT MUMBAI , has held that the powers of the Commissioner of Customs under section 110A of Customs Act, 1962 cannot be interfered with by any circular or instructions. In the impugned order, it has been admitted that the provisional release has been subject to the conditions stipulated in circular no. 35/2017-Cus dated 16th August 2017 which traverse beyond the empowerment in section 110A of Customs Act, 1962. It is for the owner of the vehicle to be compliant with law upon provisional release. Furthermore, it is on record that the vehicle has already been registered with the competent authority under the Motor Vehicles Act, 1988. Provisions under the Foreign Trade Policy including licensing norms relevant to chapter 87 in ITC(HS) classification are intended to ensure that the import of any goods, post-clearance, would not be in breach of the essential requirements of law subject to which motor vehicles may be registered for operation on roads. The policy condition is not one incorporated merely for the sake of regulating imports and exports of the country but to ensure that the imported goods are compliant with the regulatory measures, other than that relating to imports and exports, under the municipal laws of the country. The inclusion of this condition as necessary for provisional release is redundant and superfluous and we allow this appeal by expunging the said condition as requirement of provisional release - Application disposed off.
Issues involved:
1. Provisional release of seized goods with terms and conditions. 2. Compliance with policy conditions for import of a second-hand vehicle. 3. Requirement of type approval certificate for imported vehicles. 4. Interpretation of licensing notes and circulars for release of goods. Issue 1: Provisional release of seized goods with terms and conditions The appeal sought intervention in the terms and conditions for the provisional release of seized goods, specifically a 'Toyota Alphard SC 3500 cc' found to be 'second-hand' and liable for violation of policy conditions. The appellant was required to pay duty, submit a bond, furnish a bank guarantee, and comply with policy conditions for release. Issue 2: Compliance with policy conditions for import of a second-hand vehicle The appellant argued that separate policy conditions exist for new and used vehicles, highlighting compliance with the licensing notes for new motor vehicles. The appellant contended that the stipulated condition for provisional release was imposed despite compliance with requirements and registration under the Motor Vehicles Act, 1988. Issue 3: Requirement of type approval certificate for imported vehicles The Tribunal referenced a previous decision regarding the necessity of a type approval certificate for imported vehicles, emphasizing the importance of ensuring roadworthiness and safety for public use. The Tribunal noted that the type approval certificate is crucial for the registering authority, not the Customs authority during import. Issue 4: Interpretation of licensing notes and circulars for release of goods The Tribunal analyzed the powers of the Commissioner of Customs under section 110A of the Customs Act, 1962, emphasizing that circulars should not surpass statutory provisions. The Tribunal concluded that the policy conditions under the Foreign Trade Policy aim to ensure compliance with regulatory measures beyond import-export regulations, confirming that the vehicle's registration under the Motor Vehicles Act, 1988 sufficed for operational compliance. In conclusion, the Tribunal deemed the inclusion of the type approval certificate condition for provisional release redundant and superfluous, allowing the appeal by removing the requirement. The ruling emphasized the importance of compliance with regulatory measures post-clearance to ensure imported goods meet essential legal requirements for operation on Indian roads.
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