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TMI Blog1988 (9) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... ving his base at U.K. and carnets were obtained at Netherlands and since 2 vehicles were imported by 2 carnets, some doubt was fe.l.t. by the Customs regarding the bonafide of the importation and particularly when the appellant was not representing or leading any group of tourists. The appellant was asked to produce the registration book for the vehicles. It appears by his letter dated 12-7-1988 addressed to the Collector the Appellant stated: "I have obtained a translation of the Dubai Traffic Police document and enclosed a copy for you. As you will see, some-how, the vehicle left Dubai unregistered. In the circumstances, I owe you an unreserved apology as it is now obvious that you were completely right and only doing your job properly." On further enquiry, by the Customs, it transpired that the appellant's wife had brought three vehicles for tourism purposes in May, 1986 all of which were Toyota Land Cruiser 10 seaters. These vehicles were imported on 14-5-1986 and were reported to have been exported on 18-5-1986. It further appears that the appellant himself had imported a vehicle under carnet system on 16-7-1986 and the same was exported to Nepal on 20-7-1986. The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Import Policy or under the Import Control Order. The Addl. Collector had relied on the executive instruction of the Government of India which has no statutory force and therefore on the reasoning of non registration of the vehicles, the vehicles cannot be ordered to be confiscated. 9. Continuing his submission Sh. Patel pointed out that in his order the Addl. Collr. has observed that the appellant had deliberately misled the carnet issuing authority for the purpose of obtaining duty free concession under Not. No. 296 dated 2-8-1976. Sh. Patel urged that there was no basis for the Addl. Collr. to hold that the appellant had deliberately misled the carnet issuing authority. The appellant had explained in his letter dated 12-7-1988 and also by production of telex messages as to how he was misled by the Dubai party regarding the registration. Elaborating his contention Shri Patel submitted that the Dubai party sent a clearance certificate issued by the Police which was in Arabic language and the appellant bonafidy believed that the certificate contained the registration number. But later he got the documents translated in English and he realised that the registration number was not th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld be required to pay customs duty whereas if he reship to Dubai he will not have to incur any expenditure, since he has made arrangements for registration of the vehicles at Dubai. In that connection Shri Patel also relied on the telex messages that were exchanged between the appellant and the supplier of the cars. Finally Shri Patel submitted that even if the Addl. Collector was justified in ordering confiscation no fine should have been imposed and there was no justification what-so-ever for imposing the penalty on the appellant. He prayed that the 2 vehicles may either be allowed to be cleared or allowed to be reshipped to Dubai without payment of fine and penalty. 12. Shri Mondal appearing for the Collector while fully supporting the order of the Addl. Collector submitted that there was every justification for the department to suspect the bona fide of the import. He submitted that the appellant being a British National it would have been easier for him to obtain the carnets there and no explanation is forthcoming as to why he approached the FIAA at Netherlands. He further submitted that the carnets produced contained the particulars of the vehicles including the registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion one should reside in the country at least temporarily. According to the passport entry of the appellant before the shipment of the vehicles he had not visited Dubai but on the other hand he visited Dubai around 22/23-6-1988 and he would have known whether the vehicles were registered or not when he made a declaration by production of the carnets. But he made a mis-declaration. Shri Mondal submitted that since the vehicles were not covered by the carnets produced, the duty liability would be Rs. 16.5 lakhs. Even then, the Addl. Collector shown a concession and allowed reshipment on a paltry sum of Rs. 50,000/-. 13. Shri Mondal further submitted that article 28 of the Convention empowered the contracting State to initiate proceedings in the event of fraud, contravention or abuse of the carnet system and even provide for imposition of any penalty against the person using the temporary importation papers. Shri Mondal finally submitted that the appellant was not a bona fide tourist. He had mis-used the benefits provided under the International Convention. This was not the first time he was visiting India. Earlier also he had brought a vehicles and he would have known the procedure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 7 provides - "Temporary importation papers valid for the territories of all or several of the contracting States shall be known as Carnets De Passages En Douane and shall conform to the standard form contained in Annexure I of this Convention." Thus Article 7 allowed the Contracting State of fix the period of validity of temporary importation papers in accordance with its legislation or regulations. 19. Article 8 reads: "Temporary Importation papers issued by authorised associations shall be made out in the name of the persons who own the vehicles temporarily imported or who have the possession or control of them provided that, if the vehicle has been hired, the papers shall be made out in the name of the hirer." 20. The form prescribed in Annexure-I requires furnishing of the following particulars: (1) No. of Carnet (2) Validity period (3) Name of the Association which issues the Carnet (4) Holder's address (5) Normal residence or business address. It should also specify the following particulars: (1) For the vehicle registered in .........under No....... and (2) This carnet may be used in the following countries (list of Countries to be mentioned). It should also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that - (1) ........ (2) the provisions of the said notification or of the Triptyque' or 'Carnet-De-Passage' permit are not contravened in relation to such vehicles or component parts; failing which the provisions of this Order shall apply to such vehicles or component parts and such vehicles or components shall be deemed to be goods the imports of which has been prohibited under the Customs Act, 1962." 26. The notification No. 296 which exempts from payment of customs duty in respect of vehicles which are imported under Carnet specifies certain conditions: Among other things the importer should satisfy the proper office that the vehicles and component parts, which he has imported, correspond in all respects with those described in the Triptyque or Carnets-De-Passages-En-Douane and for this purpose produce the said vehicles and component parts for examination and record of particulars, by such officer. Thus it is clear that the vehicle imported should correspond in all respect with those described in the Carnet. 27. The appellant had produced two Carnets in respect of two station wagons imported by him. While giving the description of the vehicles, the country of registration a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e would expect the appellant to make some enquiry at Dubai when he visited on 23-6-1988. Therefore, his explanation that the appellant was mislead by the Dubai party, is rather difficult to accept. He also did not produce the copies of the telexes stated to have been received, on the basis of which he furnished registration Nos. to carnet issuing authority. 29. The argument of Shri S.U. Balani that the Customs authority had no justification to entertain any doubt or suspicion, also cannot be accepted. Admittedly, the appellant was a British National. He got the Carnets not from any of the association of Great Britain but from Netherlands. The vehicles were not at Netherlands when the Carnets were issued. The vehicles were at Dubai. The appellant and his wife alone had come to India. But the vehicles imported were not only two but were ten seaters each. Further, during the previous visits, the wife had imported three vehicles under Carnets and the appellant had also imported one. This was just in the year 1986. In the circumstances, if the customs authority had entertain suspicion, no exception can be taken. It is necessary to point out here that the subsequent action was not on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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