2005 (7) TMI 515 - AT - Central Excise

Confiscation of car overturned, fines reversed, and valuation upheld. Revenue's appeal dismissed.

The Tribunal set aside the confiscation of the car, allowing the respondent's cross-appeal. The fines and penalties imposed were overturned, and the ... EXIM - Car, used car, Import of - Confiscation Issues:- Appeal against Order-in-Appeal No. 51/2002 dated 6-5-2002- Violation of conditions stipulated in Customs Public Notice No. 3/97-02- Confiscation of car under Section 111(d) of the Customs Act, 1962- Reduction of redemption fine and penalty by Commissioner (Appeals)- Re-assessment of car valuation- Currency adopted for valuation of car- Appeal grounds challenging re-assessment by Commissioner (Appeals)- Use of car by importer for more than a year prior to return to India- Satisfaction of conditions stipulated in Public Notice No. 3/97-02Detailed Analysis:1. The appeal was filed against Order-in-Appeal No. 51/2002 dated 6-5-2002, where the Commissioner of Customs & Central Excise (Appeals), Bangalore, reduced the redemption fine and penalty imposed on the respondent. The case involved the violation of conditions outlined in Customs Public Notice No. 3/97-02, leading to the confiscation of a car under Section 111(d) of the Customs Act, 1962.2. The respondent imported a car, which was alleged to have not been in the use of the passenger for a minimum period of one year, contrary to the conditions specified in the Public Notice. The Original Authority confiscated the car and imposed fines, which were partially reduced by the Commissioner (Appeals) in the impugned order.3. The appeal by the Revenue challenged the re-assessment of the car's valuation by the Commissioner (Appeals), arguing that it went beyond the scope of the original show cause notice. Additionally, concerns were raised regarding the currency adopted for valuation, as the respondent had not contested the use of British Pounds instead of Irish Pounds during the assessment.4. During the proceedings, the respondent contended that the conditions of Public Notice No. 3/97-02 were met, as the car had been in the use of the importer for more than a year before returning to India. Citing a previous Tribunal ruling, it was argued that the delay in car registration did not invalidate compliance with the stipulated conditions.5. The Tribunal, after considering the arguments, set aside the confiscation of the car, allowing the cross-appeal by the respondent. Consequently, the fines and penalties imposed were also overturned. The valuation of the car by the Commissioner (Appeals) was upheld as lawful, leading to the disposal of the Revenue's appeal.This detailed analysis highlights the key legal issues, arguments presented, and the Tribunal's decision in the case, providing a comprehensive understanding of the judgment.