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TMI Blog2015 (12) TMI 657X X X X Extracts X X X X X X X X Extracts X X X X ..... y mis-declaring these as new whereas in reality all such cars were sold and registered in the country of export prior to export thereof and thus fell in the category of second hand cars thereby attracting higher duties of Customs. It was further revealed that they were involved in under-invoicing the value of these vehicles at the time of import and thus evading differential customs duty on the same. It was found that Shri Sumit Walia imported one Toyota Land Cruiser diesel car in the name of Shri Krishan Kant. The bills of entry was filed in the name of Shri Krishan Kant. The price of the car was declared as USD 64700. The duty was discharged on the basis of concessional rate of Basic Customs duty as a new car. As the importer Shri Krishan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of import of car the importer claimed concession under Notification No. 21/02 -Cus dated 1.3.2002 as new brand car but as the car was imported from a country other than the country of manufacture and the declared value of the car was more than USD 40000, therefore in terms of para 7 of Import Licensing Note of Chapter 87 of ITC (HS), the importer was required to submit Type Approval Certificate. The importer, however, failed to comply with this condition. The matter was adjudicated and for violation of Policy provision the car was confiscated under section 111 (d) of the Act and a Redemption fine of Rs. 2 lakh and a penalty of Rs. One lakh were also imposed on the importer. On payment of redemption fine and penalty, the car was released ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t redemption fine imposed on the car is highly excessive being bonafide purchaser of the car and cannot be made liable to pay the short payment of duty. Consequently, he prayed that penalty on the appellant are not imposable. 6. On the other hand, I find the learned AR supported the impugned order and submits that the car was found to be mis-declared during the course of DRI investigation and the same was found to be old car as the same was registered in the country of export. Therefore, the car was mis declared and consequently, the same was held liable for confiscation. In these circumstances, the redemption fine and penalties are rightly imposed. 7. Heard the parties and considered the submissions. 8. In this case it is admitted fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entry made under this Act or in the case of baggage with the declaration made under Section 77 in respect thereof;" Section 125 of the Act empowers the authorities after adjudication to release ths goods to the person from whose possession the same has been seized, on collection of redemption fine in lieu of confiscation. But such redemption of the goods is subject to the owner being called upon to pay any duty and charge that is payable in respect of such goods. The proviso to Section 125(1) also makes it obligatory on the adjudging authority to evaluate the fine which shall not exceed the market price of the goods confiscated (emphasis supplied). Therefore, there is a mandatory requirement on the adjudicating officer before permitting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant had no role to play either in the import or earlier adjudication proceedings....... In this background, we are of the opinion that the action of the Department to initiate proceedings against the appellant, who is a bona fide purchaser of the redeemed goods for value, is unjust and hence not sustainable in the facts and circumstances of this case." 10. Admittedly in this case, the car is reconfiscated which is not permissible in the light of decision of the Hon'ble Apex Court in the case of Mohan Meakin Ltd. (supra) . Therefore, we hold that the confiscation of car is not sustainable, the confiscation of the car is set aside. 11. Further the appellant is a bona fide purchaser of the car and have no role in importation of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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