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TMI Blog2014 (12) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Customs (Port) incharge of Appraising Group 5B, Kolkata Customs House, 15/1 Strand Road, Kolkata - 700 001. 2.1 As per the SCN one 2006 RHD TOYOTA LANDCRUISER VX 4.2 (DIESEL) - Chassis No. JTEHC05J104038448 (hereinafter referred to as 'the said car'), manufactured in Japan was exported to the United Kingdom and was registered there in September, 2006. Subsequently the said car was imported through Kolkata Port by the applicant from Singapore under Bill of Entry No. 329411, dated 6-3-2007, Bill of Lading No. SINCCU070005, dated 16-2-2007 issued by M/s. Forbes Container Line Pte Ltd., Singapore declaring the same as a new car. The supplier of the vehicle was M/s. Pride City General Trading LLC, Dubai, UAE. Customs duty was assessed as Rs. 22,44,452/- and the same was paid at the time of importation of the said car. 2.2 Subsequently, during investigation initiated by the DRI, Mumbai, it was gathered that the subject vehicle was declared as new one to the Indian Customs authority by suppressing the fact of its earlier sale and registration abroad (United Kingdom) before its import into India. As per definition in the Licensing Note No. 1(1) to Chapter 87 of ITC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duties totalling to about 167% should not be applied? (III) Why the differential duty amounting to Rs. 10,74,010/- (Rupees Ten Lakh Seventy-four Thousand and Ten only) in addition to the amount of Rs. 22,44,452/- deposited at the time of import, should not be held leviable on import of the subject vehicle on the basis of the standard rates of duty under Section 17 read with the erstwhile proviso to Section 28(1) and present Section 28(4) of the Customs Act, 1962 subject to the periods of their currency, but for limitations of period contained thereunder, and the said amount of differential duty should not be appropriated from the amounts of Rs. 8 (eight) lakh and Rs. 12 (twelve) lakh deposited in lump sum voluntarily by him in the course of investigation towards his aforesaid liability to duty & interest as importer? (IV) Why the amount of interest, determined as Rs. 8,25,327.00 (Rupees Eight Lakh Twenty-five Thousand Three Hundred Twenty-seven) only should not be held leviable under Sections 28AB and 28AA of the Customs Act, 1962, subject to the periods of their currency, read with the provisions of Section 47 of the Customs Act, 1962, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; Why, for the acts and/or omissions on the part of each of them, and/or abetting the doing or omission of such an act, rendering the subject imported vehicle, valued at Rs. 19,66,565/- (CIF) and obtained clearance under Bill of Entry No. 329411, dated 6-3-2007, liable to confiscation under Section 111 of the Customs Act, 1962, penalty should not be imposed on each of them under Section 112(a) of the Customs Act, 1962? (II) Why, for their involvement in carrying, removing, keeping or in other manners dealing with the said vehicle knowing and having reasons to believe that the said vehicle is liable to confiscation under Section 111 of the Customs Act, 1962, penalty under Section 112(b) of the Customs Act, 1962 should not be imposed on each of them? (III) Why, for knowingly and/or intentionally making, signing and/or causing to be made, signed or used declaration and documents which were false and incorrect in material particular for import, payment of duty and clearance of the vehicle under provisions of the Customs Act, 1962 as aforesaid, penalty under Section 114AA of the Customs Act, 1962 should not be imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sought from the applicant. The clarifications were received on 7-8-2014 and were taken on record. 5.3 Report under Section 127F(3) of the Act, along with relevant case records, was called for on 7-8-2014 from the Commissioner of Customs (Port), Kolkata Customs House, 15/1 Strand Road, Kolkata - 700 001 (hereinafter referred to as 'the jurisdictional Commissioner' for short) and from the DRI. 6.1 The ADG DRI submitted his report vide letter dated 28/29-8-2014, wherein, it has been stated that the applicant was liable to penalty under Section 112(a) of the Act for the acts and omissions on his part rendering the imported vehicle liable to confiscation under the provisions of Section 111 of the Act and under Section 112(b) for keeping, using and in other manners dealing with such vehicle, knowing and having reason to believe that the same vehicle was liable to confiscation under the said Section 111 of the Act; that the applicant was liable for penalty under Section 114AA of the Act; that fine was imposable under Section 125 of the Customs Act, 1962 in case the importer opts to redeem the imported second-hand and/or used vehicle valued at Rs. 19,66,565/- from confiscation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng amount of Rs. 6 lakhs without knowing the purpose for such payment. Such undocumented payment, made underhand in cash, does not appear to be bona fide expenditure towards import of the car and accordingly, for these reasons, the submissions by Shri Patankar, appearing on behalf of the applicant, that he had no knowledge that it was a used car cannot be accepted. The applicant, thus, does not deserve full immunity from penalty and fine. 8.4 The Bench also notes that the applicant has admitted the amount of duty demanded in the SCN that was issued on 8-5-2014. The applicant has cooperated with the Commission during the settlement proceedings. The entire amount of the admitted duty liability has also been paid by the applicant and he has also deposited the interest demanded thereon. The Revenue has not disputed the interest amount as worked out and paid by the applicant. Taking the above into account and in the overall facts and circumstances of the case, the Bench settles the case under Section 127C of the Act on the following terms and conditions : - Customs Duty : The Customs Duty in this case is settled at Rs. 10,74,010/-, that is, the amount demanded in the show c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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