1998 (9) TMI 279 - AT - Customs

Summary

Issues:
Importation of a car during the Gulf war from Kuwait, benefit claimed under Notification No. 258/90-Cus., non-fulfillment of bond conditions, show cause notice for non-production of CCP, confiscation of car, penalty imposition, denial of notification benefit, appeal against lower appellate authority's decision.

Analysis:
The appellant, an Indian repatriate from Kuwait during the Gulf war, imported a car and claimed benefits under Notification No. 258/90-Cus. The appellant filed a Bill of Entry for the car on 4-1-1991 and fulfilled certain conditions, including informing the Asstt. Collector about his residential address. However, the appellant was informed in February 1993 that the CCP was not required due to changes in import regulations. Subsequently, a show cause notice was issued for non-production of CCP, leading to confiscation of the car and imposition of penalties.

The Customs authorities found that the appellant had left for a job abroad, leaving the car with his brother. Despite the brother's statement that the car had not been transferred, a show cause notice was issued proposing confiscation, penalties, and denial of notification benefits. The adjudicating authority confiscated the car for non-production of CCP and parting with the car, imposing fines and penalties on both individuals.

On appeal, the lower appellate authority set aside the penalty on the brother but confirmed the penalties on the appellant. The appellate tribunal, after reviewing the facts and statements, concluded that the appellant had not parted with the car as per the bond conditions. Therefore, the benefit of Notification No. 258/90-Cus. could not be denied, and the duty demand on the car was not sustainable.

The tribunal acknowledged that the appellant failed to produce the CCP, constituting a contravention. However, considering the circumstances, the tribunal reduced the redemption fine and personal penalty imposed on the appellant. The tribunal rejected the Revenue's appeal against the brother and set aside the duty demand, reducing the fine and penalty on the appellant based on the overall facts and circumstances of the case.

In conclusion, the tribunal rejected the Revenue's appeal against the brother, set aside the duty demand, reduced the fine in lieu of car confiscation, and decreased the personal penalty imposed on the appellant. The appeal of the appellant was disposed of accordingly, with adjustments made to the fines and penalties.