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2016 (10) TMI 18

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..... d March 2010. Given the proximity of the date of manufacture of the car and date of its import, it cannot be said the said car ceased to be a new car and became a 'second hand' car at the time of its import. Denial of benefit of notification, confiscation of car , demand of differential duty interest and penalty withheld - petition disposed off - decided in favor of petitioner. - W.P.(C) 746 and 7779 of 2015 - - - Dated:- 1-6-2016 - S. MURALIDHAR AND VIBHU BAKHRU JJ. Mr. Satish Aggarwala, Advocate for the Petitioner. Mr. Krishna Kant, Advocate for the Respondent. ORDER 1. The short question that arises for consideration in these writ petitions by the Directorate of Revenue Intelligence ( DRI‟) and the Commissi .....

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..... this writ petition are that the DRI, Delhi Zonal Unit, New Delhi received information regarding a syndicate of persons including one Mr. Sumit Walia fraudulently importing high end luxury cars on large scale from various foreign clients by mis-declaring these cars as new cars whereas such cars were sold and registered in the country of export prior to being exported to India and thus fell in the category of second hand cars, thereby attracting higher rate of custom duties than what was paid. 4. It is stated that searches were conducted at the various premises of Mr. Sumit Walia situated in Delhi and NCR on 26th April 2011 and several incriminating documents, laptop, pen drives etc. were recovered. Some imported cars were also recovered. .....

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..... ed the duty liability on account of undervaluation to the tune of ₹ 9,84,236 but it contested the allegation concerning wrongful availment of exemption notification. 7. The DRI, in response to the above application, filed a detailed report before the CCESC dated 6th November 2013. 8. By the impugned order dated 19th June 2014, the CCESC gave directions in the manner as indicated hereinbefore. Facts in W.P.(C) No.7779/2015 9. This petition impugns an order dated 30th March 2015 passed by the CCESC allowing Settlement Application No. 4120 of 2014 of the Respondent. The facts leading to this order are that pursuant to the aforementioned information received in relation to the import of high end luxury cars by Mr. Sumit W .....

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..... to the government account. 11. The Respondent then filed a Settlement Application No. 4120 of 2014 before the CCESC, New Delhi on 13th March 2014. The Respondent admitted the duty liability on account of undervaluation to the tune of ₹ 10,32,737 but it contested the allegation concerning wrongful availment of exemption notification. 12. The DRI, in response to the above application, filed a detailed report before the CCESC dated 29/30th May 2014. 13. By the impugned order dated 30th March 2015, the CCESC gave directions in the manner as indicated hereinbefore. Applicability of Notification No. 21/2002-Cus: 14. Mr. Satish Aggarwala, learned counsel for the Petitioner draws attention to the order passed by the Supreme .....

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..... Import) Noshire Moody 2014 (300) ELT 205 (Bom) where it is noted that registration of the car in the U.K. was only to comply with the requirement of the licensing authorities in the U.K. who require registration even for the purposes of exportation. 16. In the facts of W.P. (C) No. 746/2015, the car in question was sold to the authorized dealer M/s Stratsone AML Hagley in November 2007 where after it was purchased by M/s A K international Ltd UK. In the impugned order dated 19th June 2014, the CCESC has recorded a finding of fact in paragraph 17.5 as follows: 17.5 In the present case, the car was sold by the manufacturer to the authorized dealer M/s. Stratastone AML Hagley in November, 2007. The car was in turn sold by the author .....

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..... 10 and subsequently sold and shipped to the dealer in the U.K. and thereafter was exported by M/s Continental Motors, U.K. to India on 22nd March 2010. Here again given the proximity of the date of manufacture of the car and date of its import, it cannot be said the said car ceased to be a new car and became a 'second hand' car at the time of its import. 19. Consequently, the impugned orders of the CCESC dated 19th June 2014 and 30th March 2015 giving the benefit of the Customs Notification No. 21/2002-Cus dated 1st March 2002 cannot be said to be perverse warranting any interference by this Court. The other directions issued by the CCESC regarding interest, penalty, fine in lieu of confiscation and grant of immunity from prosecu .....

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