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TMI Blog1996 (2) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... pe for hearing. Since the submission was made in the end of the arguments, we proceed to decide these appeals without prejudice to the contentions of the parties in the departmental appeals. 2. It appears that during the period 1988-90, certain Non-resident Indians who were returning to India for permanent settlement, imported Volkswagan Audi cars from manufacturers in West Germany on the basis of CCPs issued in their names. They took the assistance of Sadiq A Futehally (appellant), Prop. of M/s. Ashiya Motors, Bombay in placing orders for the car, applying for CCPs, arranging shipment and in clearing the cars from the Customs House. The Directorate of Revenue Intelligence, received information that there was mis-description and under-invoicing of imported Audi cars and in the course of investigation, the premises of the appellant and other premises were searched and the statements of the importers, Indian agent of the manufacturers and others concerned with the imports, were recorded. The appellant Prop. of M/s. Ashiya Motors, is the sole distributor and dealer of these cars in India. After completing the investigations, show cause notices were issued in regard to various import ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y show that the car imported by him was not for his own use but it was for sale by the appellant; that he had already received advance amount before importation and even the CCP fees was paid by the appellant and he had allowed his name to be used for importation and the car did not belong to him. The Collector rejected the alleged retraction of the statement on the ground of belatedness. With regard to Quazii S. Ahmed, the Collector relied on his statement that there was understanding between him and the appellant that he was to sell the car through the appellant; that he received the CCP and gave it to the appellant for arranging shipment and at that point of time, the appellant offered to find a buyer for Rs. 11 to 12 lakhs and Quazi S. Ahmed demanded a profit of Rs. 4 to 5 lakhs. On the basis of these answers, the Collector held that the car was not imported by Quazi S. Ahmed on his own and it was not a bona fide importation. 5. Learned Counsel for the appellant took us through the statements of the two importers Quazi S. Ahmed and K.D. Sunny and also the relevant records relating to the provisions of import and the seizure of 28 CCPs. He pointed out that out of the 28 CCPs s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CP with the help of appellant. He received the invoice dated 1-11-1988 for the car and also spare parts invoice by post. In December 1989, he received the cargo notice. He met the appellant s Manager and was asked to sign various blank declaration forms for enabling M/s. Ashiya Motors to clear the car through Customs. He had authorised Prabakar Bhagwan to clear the Audi car at the suggestion of the appellant. The car which was sent, had no AC though he had placed an order for car with AC and RC. In the second statement recorded on 24-5-1990, he stated that the money paid for the car belonged to him as his earnings abroad. He could not explain how the parts and fittings exceeded those ordered by him. In the third statement recorded on 30-5-1989, in answer to question Nos. 5 to 6, he stated as follows : I was to sell this car to him (the appellant - On receipt of CCP in July 1989, I gave the CCP to Shri Futehally for arranging shipment of car. At this point, he asked me that he would arrange a buyer for this car with offer of Rs. 11 to 12 lakhs. I told him that I want to sell this car for a good profit of Rs. 5 to 6 lakhs because I have given my clearance and sale of my car to S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded on 30-5-1989 on which reliance was placed by the Collector itself shows that it was a genuine import by Quazi S. Ahmed. It is true that at no time, he entertained the desire of personally using the car and at all times he had the intention of selling the car. This is not barred either by the terms of the policy or conditions of licence. What is required is that he should pay the price out of his earnings abroad before applying for CCP and he should be the owner at the time of importation and till the clearance of the car. The fact that an importer, even before clearance of the car entertained the idea of selling the car and entered into negotiations and arrived at an agreement in that behalf, will not put an end to his right or title to the car. Quazi S. Ahmed and the appellant agreed that the appellant would arrange a buyer for the car ensuring a profit to Quazi S. Ahmed. This of course was in July 1989 before importation. This agreement does not violate any of the conditions referred to above. It cannot be said to be inconsistent with relevant clauses of Chapter IX of the Import Policy. The Policy does not stipulate that a Non-Resident Indian returning to India on permanent s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for spare parts. He was not aware of the declaration to the Customs in regard to the spare parts. He did not know which are standard fittings and which are optional fittings. To a specific question on amount of consideration for sale of his car, he stated that as per verbal agreement with the appellant, he was get a sum of Rs. 2,50,00/- i.e. Rs. 1,75,000/- for the car and Rs. 75,000/- as profit out of which he had already received Rs. 50,000/- from the appellant in anticipation of the same. 11. In his statement recorded on 25-6-1990, K.D. Sunny stated that he had received a copy of order dated 23-6-1989 from M/s. Ashiya Motors which shows the accessories ordered but the invoice refer to a larger number of accessories. The accessories had been ordered by M/s. Ashiya Motors without his knowledge and they might have paid the cost of the accessories. M/s. Ashiya Motors placed orders for extra accessories to get more profit on the car as the car was to be sold by them and he was to get the cost of the car plus the profit of Rs. 50,000/- which he had already received. The following specific question was put to him : From whatever is disclosed, it appears that you had merely allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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