New versus second-hand imported vehicle classification turned on showroom display status, zero mileage, and prior use evidence.

An imported motor vehicle kept only as a showroom display unit, never registered, sold, or used before importation, was treated as a new car rather than a second-hand vehicle for customs duty purposes. The supplier's declaration of zero mileage and invoice sale to the importer supported that classification, so the vehicle did not fall within the scope of Notification No. 4 (RE-2001)/1997-2002 governing used vehicles. The invoice value was accepted for assessment under Rule 4 of the Customs Valuation Rules, 1988, while confiscation, redemption fine, and penalty were left undisturbed.

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Issues: Whether the imported motor vehicle was a new vehicle or a second-hand vehicle for the purpose of customs duty under the relevant import notification.

Analysis: The vehicle was a 1999 model kept only as a showroom display unit, was not registered for use in Dubai or any other country, had not been sold or used before importation, and was supported by a supplier's declaration showing zero mileage and sale to the appellant on invoice. On these facts, the vehicle did not answer the description of a second-hand or used vehicle under Notification No. 4 (RE-2001)/1997-2002. The invoice value was accepted for assessment under Rule 4 of the Customs Valuation Rules, 1988, and the confiscation, redemption fine, and penalty were left undisturbed.

Conclusion: The vehicle was held to be a new car and customs duty was required to be assessed on that basis, in favour of the assessee.

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