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TMI Blog2011 (11) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... ar allegations. Thus, while upholding the confiscation, vehicle ia allowed to be redeemed on payment of redemption fine. It is found that the valuation has been arrived at by Department based on manufacturers' price after granting discount and allowing depreciation. Therefore, there is no reason to interfere with the enhancement of value. Further, Since, the vehicle has been imported in violation of licencing restrictions and attempted to be cleared declaring a price lower than even the admitted price, penalty on the appellant is justified. - C/2441/2011 - - - Dated:- 21-11-2011 - Mr. P.G. Chacko, Mr. M. Veeraiyan, JJ. Appearance Mrs. Nisha Bineesh, Advocate, for the appellant Mr. Ganesh Haavanur, SDR, for the revenue Pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... car has been imported from UK, which has right hand drive, which is equivalent to the Indian norms. Since it is BMW, this car has been running on Indian roads and also sold in Indian outlets. (ii) The main intention to get the car to India was that he got it at a price of around Rs. 6 lakhs including the original price, taxes, commission and other tariffs, when it is bought in UK. (iii) As the car has lot of repairs, damages and bought in auction at the said lower price, which is much lesser than the actual evaluated price. (iv) That he is not accepting the value arrived at by the Department and submitted the actual freight invoice i.e. Rs. 1,48,654.84 and further submitted that the car needs lot of repairs worth Rs. 15 lakhs and req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value. In this regard she relied on the invoice dated 09.08.2010 issued by 'J.N. Bauer Ltd. Trafford Garage, Trafford Road, Alderley Edge, Cheshire SK9 7NT.' It was claimed that the vehicle was taken in auction and therefore, the price appears to be very low. In support of this claim that the vehicle was taken in auction, she relied on a letter dated 27.06.2011 from J.N. Bauer Ltd, which reads as under: J N BAUER LTD. Date: June 27th 2011 Sub: Authentication of the BMW 730DSE Pricing Dear Sir/Madam, This is to verify that Chenna Kranti Kumar bought the car from J N BAUER LTD on 09.08.2010 for an amount of 2857 Pounds and its paid in cash. The invoice number for the vehicle is IBN 0251. Since the vehicle is bought in an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ody else using the name of the appellant on any other similar allegations. Under these circumstances, we are of the view that an option to redeem the vehicle on payment of fine deserves to be given to the appellant. 7.1. The next issue to be considered is the correctness of the decision for enhancement of the value. The appellants are not challenging the finding of the Commissioner regarding the nature and condition of the vehicle. Undisputedly, the vehicle is a high end model namely BMW 730 D SE. The year of manufacture was found to be 2007 as per indication on the parts of engine. The vehicle was found to have run only about 22560 Kms. These facts have not been disputed by the appellants. Under these circumstances, the value of Rs. 2, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntimated that the impugned car is of 2007 make and its price was 51,428.00 GBP, inclusive of taxes, which is the list price. Thus, starting from the aforesaid price, the assessable value of the car can be worked out. Since the above price is the list price, deduction of 15% would have to be allowed on account of trade discount. Also depreciation would have to be allowed for the 4 year period between the year of manufacture and the time of import (year of manufacture is 2007, the time of import is last quarter of 2010). As discussed in para 5, the admissible deduction would be: First year = 16% @ 4% for every quarter during 1st year 2nd year = 12% @ 3% for every quarter during 2nd year 3rd year = 10% @ 2.50% for every quarter during 3r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uments indicating a price lower than the price admitted by them during the personal hearing. 7.5. In view of the above, we find no reason to interfere with the enhancement of value. 8. Since, the vehicle has been imported in violation of licencing restrictions and attempted to be cleared declaring a price lower than even the admitted price, penalty on the appellant is justified. 9. In view of the above the appeal is disposed of as follows: a) The enhancement of value is upheld. b) While upholding the confiscation, we allow the vehicle to be redeemed on payment of redemption fine of Rs. 2 lakhs within 3 months from the date of receipt of this order. Applicable duty on the enhanced value shall be payable at the time of redemption o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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