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TMI Blog2006 (6) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... e that the applicant had filed Bill of Entry No. 252933, dated 11-4-2005 for clearance of a new Volkswagen Car at Air Cargo Complex, Sahar, Mumbai through its CHA and declared the assessable value of the car as Rs. 20,46,014.47. The car was declared to be loaded from Bremerhaven, Germany and supplied by M/s. Volkswagen AG, Germany and the declared CIF value was Euro 35384.40 as per the import invoice No. 07284397 dated 22-1-2005 presented by the applicant. The car was ordered for first check examination. Since the declared value of the car appeared to be on the lower side, the Special Investigation & Intelligence Branch (SIIB), Air Cargo Complex took up the matter for investigation. On re-examination of the car the officers of the SIIB noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e filing of the Bill of Entry dated 11-4-2005. 6. In the meanwhile the case was re-adjudicated by the Commissioner of Customs (Import), Air Cargo Complex, Mumbai vide Order-in-Original CAO No. CC (SP)-39/2005 Adjn ACC, dated 16-11-2005 ordering confiscation of the car, rejecting the declared transaction value of the car and re-determining the value at Rs. 46,42,803/- including the value of all optional accessories and imposing penalty on the applicant and the co-applicant. The total duty payable on re-determined value was held as Rs. 48,31,765/-. The adjudicating authority also ordered release of the car on payment of balance differential duty, redemption fine of Rs. 10,00,000/- and penalty. 7. The admission hearing was held on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , vide Admission Order No. 35/2005-Cus, dated 30-12-2005, held that the de novo adjudication order dated 22-11-2005 (supra) was non est. The Commission allowed the applications to be proceeded with under Section 127C(1) of the Act. The amount of Rs. 21,15,437/- deposited by the applicant was allowed to be adjusted against the admitted duty liability of the applicant and the applicant was directed to deposit the balance amount of Rs. 6,53,630/- within 30 days of receipt of the order. The applicant was further directed to execute a Bank Guarantee of Rs. 20,31,270/- along with a bond for Rs. 46,42,803/-, if provisional release of the car was desired. The Commission also directed the Revenue to ascertain the authenticity of the price certificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he duty liability admitted by the applicant which is based on the certificate given by the manufacturer of the car. Pleading his case for immunities the ld. Advocate submitted that the present case does not involve ITC violation wherein the Commission in earlier cases had imposed redemption fine and penalty. In the present case the valuation of the car was in dispute. Moreover the car was in the custody of the Revenue since its import and would have to bear huge demurrage cost. The applicant would also have to conduct necessary repairs so as to make the car road worthy which would wipe out any profit margin. In fine he sought immunities to the applicant and the co-applicant from fine, penalty, interest and prosecution. 12. The Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e issued by the manufacturer of the impugned car. The Revenue has not been able to contradict the certificate submitted by the applicant even though they had seven months time for the purpose. When the manufacturer's price is available, which is not contradicted by any documentary evidence, the duty has to be calculated on the same and not on the price available on the internet as has been done by the Revenue. The Bench accordingly settles the case under sub-section (7) of Section 127C of the Act on the following terms and conditions. Customs duty : The Customs duty in the case is settled at Rs. 27,69,067/-. This amount already stands paid. Interest : As the car was not released to the applicant, interest liability does not accrue in this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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