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2015 (12) TMI 657 - CESTAT NEW DELHI

2015 (12) TMI 657 - CESTAT NEW DELHI - TMI - Re-Confiscation of car from purchaser after import - Under invoicing of value of cars - Evasion of duty - Imposition of redemption fine and penalty - Held that:- At the time of importation, the car was confiscated and allowed to be redeemed on payment of redemption fine and penalty imposed on the importer and the car was cleared by the importer, Shri Krishan Kant on payment of the penalty. The appellant is the bonafide purchaser of the car in question .....

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cided in favour of assessee. - Customs Appeal No. 52184 of 2015 - Dated:- 21-10-2015 - Ashok Jindal, Member (J) And R. K. Singh, Member (T) For the Appellants : Shri M K Gupta, Consultant & Shri Sunil Kumar, Adv For the Respondent : Shri Ranjan Khanna, AR ORDER Per Ashok Jindal The appellant is in appeal against the impugned order imposing the Redemption fine of ₹ 10 lakhs and various penalties under Customs Act, 1962. 2. The facts of the case are that an intelligence was received by D .....

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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 Kant could not produce the certificate from the country of manufacture therefore, the car was confiscated and a redemption fine of ₹ 2 lakhs was im .....

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longs to her husband Shri Jagat Mohan Aggarwal and all the details about the cars will be with her husband only. Thereafter a notice for appearance was given to Shri Jagat Mohan Aggarwal for his appearance on 20.5.13, but before that a show cause notice dated 13.5.13 was issued for confiscation of the car in question and for proposing imposition of redemption fine and penalty on the appellant. The said show cause notice was adjudicated and the impugned order is passed holding the car liable for .....

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ported 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 ₹ 2 lakh and a penalty .....

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ine and penalty. Thereafter, the car has been seized in the impugned proceedings on the ground that car is an old one and imported by Shri Sumit Walia in the name of Shri Krishan Kant and the impugned order has been passed. 4. He submits that reconfiscation of car by the impugned order is against the settled position that once the goods are confiscated and allowed to be redeemed by the Customs authorities, then the department cannot initiate another proceedings to reconfiscate the goods as per t .....

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s in the case of Five Star Shipping Co. (P) Ltd. [2007 (219) ELT 168 (Tri-Mum). 5. In alternative, he submits that 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 investiga .....

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importer and the car was cleared by the importer, Shri Krishan Kant on payment of the penalty. The appellant is the bonafide purchaser of the car in question. 9. We find force in the contention of the learned Counsel that once the car is confiscated and allowed to be redeemed on payment of redemption fine and penalty, the car cannot be re-confiscated. The said issue came before the Hon'ble Apex Court in the case of Mohan Meakin Ltd. (supra) wherein the Hon'ble Apex Court has held as und .....

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n - x x x x x (d) any goods which are imported or attempted to be imported or are brought within the Indian customs waters for the purpose of being imported, contrary to any prohibition imposed by or under this Act or any other law for the time being in force; (m) any goods which do not correspond in respect of value or in any other particular with the 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 e .....

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hasis supplied). Therefore, there is a mandatory requirement on the adjudicating officer before permitting the redemption of goods, firstly, to assess the market value of the goods and then to levy any duty or charge payable on such goods apart from the redemption fine that he intends to levy on sub-clause (1) of that Section. 6. In the instant case, it is an admitted fact that after issuing a notice as contemplated under Section 124 of the Act, to the importer of the goods in question and adjud .....

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