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2018 (8) TMI 1409 - HC - CustomsRedemption fine and duty imposed on seized vehicle - Porsche Carrera car - mis-declaration of model, description of the goods and resultant diminution of value on which duty was levied - Importer of vehicle - bonafide purchaser. Whether Customs Duty and redemption fine can be demanded from the person in ownership and custody of the imported goods? - n what circumstances can a person other than the actual importer be liable to pay Customs Duty and Redemption Fine on goods imported in violation of Customs Law? - Can the imported goods be subject matter of a charge for payment of Customs Duty and Interest due thereon irrespective of whether or not the ownership in these goods have been transferred to a person other than the original importer? Held that:- In the present case, the redemption fine was imposed at ₹ 6,00,000/- and short levy of duty was collected at ₹ 17,92,847/-. The subsequent bona fide purchaser may not have any liability to duty. However, by confiscation, the State gets the authority to recover the entire market value of the goods, which would definitely be more than the duty. If redemption is not made then the person from whose possession the goods are seized merely looses the property in goods and there could be no further levy of duty on the bona fide purchaser. The Department, despite such confiscation could proceed for recovery of duty too, but only from the importer. Section 125 comes into play only after there is a confiscation effected by the Commissioner, which gives an option to the owner or the person from whom the goods were seized to apply for redemption. In applying for redemption, the owner or person from whom the goods were seized would have to pay the redemption fine as imposed by the Commissioner under Section 125(1) - The option being a choice of the person, there cannot be any contention raised against payment of short levy of duty, which is a necessary consequence of redemption under Section 125 of the Act. The customs duty and redemption fine can be demanded from the person in ownership and custody of the imported goods on an option exercised for redemption, despite there being no liability to duty on any person other than the importer - the imported goods on there being a short levy of duty along with interest, would be liable for confiscation. Appeal allowed - decided in favor of Revenue.
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