Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Customs Customs + AT Customs - 2018 (3) TMI AT This

  • Login
  • Cases Cited
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2018 (3) TMI 1258 - AT - Customs


Issues:
1. Violation of Foreign Trade Policy and imposition of redemption fine on the appellant.

Analysis:
The case involved M/s. Precision Car India Pvt. Ltd. importing a Hybrid Porshe car, which was later sold to an authorized dealer and then purchased by the appellant. The Customs authority seized the car due to a violation of the condition for import of Hybrid cars under the Foreign Trade Policy. The appellant, not being the importer, argued that they should not be held liable for the violation. The department issued a show cause notice leading to the confiscation of the car with a redemption fine and penalty imposed under the Customs Act, 1962. The Commissioner (Appeals) upheld the confiscation but waived the penalty, leading to the appellant filing an appeal.

The appellant's counsel contended that the appellant, as a bona fide buyer, should not be penalized for the importer's violation of the Foreign Trade Policy. They cited a Supreme Court judgment to support their argument and proposed a settlement for a reduced redemption fine. On the other hand, the Revenue argued that since there was a violation, confiscation of the goods and imposition of the redemption fine were justified. They relied on previous judgments to support their stance.

After considering both sides' submissions, the tribunal noted that the appellant was not the importer and had no role in the clearance of the goods. While upholding the confiscation of the goods due to the violation of the Foreign Trade Policy, the tribunal acknowledged the appellant's bona fide intentions and reduced the redemption fine from &8377; 6.25 lakhs to &8377; 4 lakhs. The tribunal emphasized that the appellant should not be unduly penalized for a violation they were not party to, and hence, partially allowed the appeal by modifying the impugned order to reflect the reduced redemption fine.

 

 

 

 

Quick Updates:Latest Updates