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TMI Blog2024 (4) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... the violations noticed. The goods after clearance were purchased by the Appellants. As per post clearance investigation by DRI the car was once again subject to adjudication proceedings based on fresh violations that were allegedly unearthed by DRI. M/s Mothers Pride is a limited company and is an independent legal entity. The learned Original Authority has not clearly brought out any charge against the appellants other than that they were involved in the purchase of the car. There is no allegation that the Appellants were the importers of the impugned car. The main charge and the action that follows in the Order in Original was mainly against M/s Mothers Pride. Since they are not before me, the issues relating to valuation, duty, interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cruiser Prado Car vide Bill of Entry dated 15.2.2005 through Chennai Seaport. The value of the said car at the time of import was declared at USD 5,000 (CIF) in the Bill of Entry. The value of the car being found low was re-determined by the Customs Officers at Rs 03,75,555/- at the time of import. The importer admitted that he did not possess the car for a minimum period of one year as required for the TR facility. The car was thus found liable for confiscation under section 111(c) of the Customs Act read with Section 3(3) FTDR Act, 1992. After due process the matter was adjudicated vide OIO dated 15/03/2005. Fine and penalty was imposed. The importer paid the adjudication dues and cleared the car on 04/03/2005. 2.1 Based on the post clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also imposed other adjudicatory liabilities on M/s. Mothers Pride. Further, penalty of Rs.50,000/- each was imposed on the Appellants Ms. Sudha Gupta and Shri Anand Bansal, Directors of the company in terms of sec. 112(a) of the Customs Act, 1962. Aggrieved by the imposition of penalty Ms. Sudha Gupta and Shri Anand Bansal have preferred appeals before the first Appeal Authority, which was dismissed by the learned Commissioner (Appeals). Hence the present appeals before this Tribunal. 3. Shri R. Sethu Prabakaran, learned counsel appeared for the appellants and Shri N. Satyanarayanan, learned Assistant Commissioner appeared for Revenue. 4. It is the Appellants plea that they had purchased the car after the importer had paid full rate of dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned order be upheld. 6. Having gone through the facts of the case and after hearing the rival parties I find that the impugned order relates to the import of a car by claiming duty concession under the TR scheme. The Custom House found that the car import violated the EXIM policy and the value declared was also low. They hence cleared the goods only after enhancing the value, denying concessional rate of duty under the TR facility and collecting fine and penalty for the violations noticed. The goods after clearance were purchased by the Appellants. As per post clearance investigation by DRI the car was once again subject to adjudication proceedings based on fresh violations that were allegedly unearthed by DRI. It resulted in the issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he penalty was paid and the goods cleared for home consumption, the restrictions of sale etc. which would have been present had the goods been cleared under TR concession no longer holds good. In such a situation the Appellant cannot be said to have infringed any provision of the Customs Act, even if they had due to ignorance, participated in procuring the impugned car for the company and sought to cloak the purchase under a veil of legalese involving a car loan. The judgment of the Hon ble High Court of Kerala in Commissioner of Customs Versus Sanjay R. Khushalani [2010 (251) E.L.T. 42 (Ker.)] cited by the Appellants, squarely covers the issue. The relevant passage is cited below; 2. Standing counsel appearing for the appellant contended t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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