New vehicle exemption under customs notification upheld where prior registration was not proved and dealer routing was insufficient.

Imported cars were treated as new vehicles eligible for concessional customs duty because the evidence did not show prior registration before import into India. The Tribunal noted that the UAE export certificates contained no registration date, and the mere routing of the cars through a dealer in Dubai did not by itself defeat the exemption. It also held that low odometer readings were not conclusive against newness, since such movement could result from test driving or handling by dealers or manufacturers. On that basis, the notification benefit was available to the assessees.

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Issues: Whether the imported cars qualified as "new vehicles" for the concessional duty benefit under the relevant customs notification, and whether the evidence showed that the vehicles had been registered prior to importation into India.

Analysis: The Tribunal found that the vehicle export certificates issued by the UAE authority showed no date of registration for the cars in UAE. The cars were shipped from Japan to a dealer in Dubai and then imported into India, but there was no material to show registration before importation. The Tribunal held that routing the goods through a dealer in a third country did not by itself defeat the exemption. It also found that the few kilometres shown on the meter did not disqualify the cars, since such readings could arise from test driving or movement by dealers or manufacturers. On this basis, the Tribunal held that the vehicles were not shown to have been registered before import and were therefore eligible for the notification benefit.

Conclusion: The cars were held to be new vehicles not registered prior to importation, and the benefit of concessional duty under the notification was available to the assessees.

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