Transfer of residence car imports: no implied requirement of prior registration in the importer's own name under the policy.

Where a transfer-of-residence policy for import of a second-hand car prescribes only the stated conditions, no additional requirement of prior registration in the importer's own name can be implied. The policy allowed import by a person settling in India if there was no direct or indirect remittance of foreign exchange from India and the vehicle remained subject to a no-sale condition for two years. On the facts, there was no material showing foreign exchange outgo from India and the importer was willing to comply with the undertaking and endorsement requirements. Eligibility for clearance was therefore established, and confiscation, redemption fine and penalty were not sustainable.

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Issues: Whether an importer bringing a second-hand car into India on transfer of residence was required, under Public Notice No. 3 (RE-2000)/1997-2002 dated 31-3-2000, to establish that the vehicle stood registered in his own name as a condition for clearance, and whether confiscation, redemption fine and penalty were sustainable.

Analysis: The policy permitted import of an automobile by a person settling in India after a continuous stay abroad, provided the import did not involve any direct or indirect remittance of foreign exchange from India and the vehicle carried a no-sale condition for two years. The requirement of registration in the importer's name was not found in the policy and could not be read into it. On the facts, no material was shown to prove foreign exchange outgo from India, and the importer was willing to comply with the no-sale undertaking and production requirements. In that view, ownership or prior registration in the importer's name was held irrelevant to eligibility for clearance.

Conclusion: The importer was entitled to clearance of the car under the public notice without confiscation, redemption fine or penalty, subject to discharge of the duty payable and compliance with the prescribed endorsement conditions.

Final Conclusion: The import was held permissible on compliance with the policy conditions, and the impugned confiscatory and penal consequences were set aside.

Ratio Decidendi: Where an import policy prescribes specific conditions for import of a vehicle, no additional condition such as prior registration in the importer's name can be implied unless expressly stated in the policy.

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