TMI Blog2012 (5) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... in the U.K. who require registration even for the purposes of exportation. The car was not used in the U.K. The finding that the vehicle was a new motor vehicle is not perverse or contrary to the evidence. - Decided in favor of assessee. - Writ Petition No. 2426 OF 2012 - - - Dated:- 26-4-2012 - D Y Chandrachud and Mrs Mrudula Bhatkar, JJ For Appellant: Mr A S Rao JUDGEMENT Per: D Y Chandrachud, J: 1. These proceedings arise from a decision of the Settlement Commission under the provisions of Section 127-C(5) of the Customs Act 1962. 2. The Respondent imported a Ferrari under a bill of entry dated 14 February 2008 at Nhava Sheva. He claimed the benefit of an exemption notification 21/2002CUS dated 1 March 2002 on the bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s issued a circular on 11 January 2005, circular 1/2005 to deal with this situation by which field formations were directed- "to verify whether the registration is a formality or not and to compare the date of dispatch of the car with the date of registration and that such temporary registration was not interfering with the Notification benefit . 4. The Settlement Commission noted that the purpose and intent of the exemption under the notification as brought out in a budget speech of the Finance Minister and a budget explanation note of 200102 is to discourage the import of second hand cars by fixing a higher rate of duty. The CBEC circular, however, clarifies that a mere documentary registration for enabling transit and shipment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferential duty was paid in full together with interest of Rs.13.63 lacs. The duty, as observed by the Settlement Commission, was deposited even prior to the issuance of a notice to show cause. On these facts, the Settlement Commission determined the differential customs duty liability at Rs.61.32 lacs in accordance with law and also recorded that the entire interest had been paid. A penalty of Rs.3 lacs and Rs. 2 lacs was imposed respectively, in lieu of confiscation and upon the Respondent, invoking the show cause notice, while granting immunity from penalty in excess of the aforesaid amount. 6. Counsel appearing on behalf of the Revenue submits that the car which was imported was not a new car within the meaning of the exemption notific ..... X X X X Extracts X X X X X X X X Extracts X X X X
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