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TMI Blog2008 (10) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... the designated ports for import of new car. Though, it is a new car according to the appellants, its registration was done abroad prior to its export into India. Revenue proceeded against the appellants on grounds of violation of (i) EXIM Policy and (2) Customs Notification. 4. In terms of the Customs notification, when a car is registered prior to its import into India it would be considered as a used car. Once a car is considered as used, the benefit of Notification No. 21/2002-Cus. will not be available for the said car. Therefore, the Commissioner held that the said car is liable for confiscation under Section 111(d) of the Customs Act and consequently, he imposed a redemption fine of Rs. 5/- lakh and penalty under Section 112(a) to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arily allocated for transportation of the motor vehicles from the showroom to the airport to facilitate its export. Some other instances have also come to notice when the cars though new, are registered abroad before being exported to India for exhibition, field trials, etc. Decision : The Board observed that condition (c) of category 2 (I) of Licensing Note to Chapter 87, states that a new imported vehicle for the purpose of this Chapter shall mean a vehicle that has not been registered for use in any country according to the laws of that country, whereas as per the referred Customs Notification, it should not be registered anywhere prior to importation. It was also noted that in many countries, registration of the vehicle is an essential ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation before shipment to India. The Board's Circular has also clarified the point. It is also seen from the impugned order that the car was registered in October 2007 and the shipment was made in January 2008. Further, from the Examination Report, it is seen that the car has run only for 16 km. From this, it is very clear that the registration is only a formality. Taking into account the facts and circumstances, we cannot come to the conclusion that the car is a used one. Hence, there is clear case here for extending the benefit of the said Customs Notification. 8.1 As regards the fine and penalty, there is a case for its reduction in terms of the judgment referred to by the learned counsel in the case of D'Souza Lawrence v. CC, Cochin (su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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