Misdeclaration in imported vehicle valuation supports confiscation, but redemption fine and penalty may be reduced when absolute confiscation is unjustified.

Misdeclaration in imported vehicle particulars justified confiscation, but the facts did not support absolute confiscation. The valuation based on comparable model price, trade discount, depreciation, and additions for fittings and refurbishment was upheld because the importer failed to produce reliable contrary evidence. While confiscation remained sustainable, redemption was allowed on moderated terms: the redemption fine and penalty were reduced in view of the vehicle's prolonged departmental custody and the overall nature of the lapse.

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Issues: (i) Whether the assessable value of the imported vehicle as upheld by the Commissioner (Appeals) called for interference; (ii) whether absolute confiscation of the vehicle was warranted; (iii) whether the redemption fine and penalty required reduction.

Issue (i): Whether the assessable value of the imported vehicle as upheld by the Commissioner (Appeals) called for interference.

Analysis: The declared particulars of the vehicle were found to be inconsistent with the particulars revealed on examination and investigation. The importer did not produce reliable evidence to support the alternative valuation claimed before the authorities below, and the challenge to the method adopted by the department was not substantiated. The valuation based on comparable model price, trade discount, depreciation, and additions for fittings and refurbishment was found to be a reasonable basis for assessment.

Conclusion: The valuation upheld by the Commissioner (Appeals) was not interfered with.

Issue (ii): Whether absolute confiscation of the vehicle was warranted.

Analysis: The vehicle was liable to confiscation because of mis-declaration of relevant particulars, but the nature of the offence and the surrounding facts did not justify deprivation of redemption altogether. The fact that the importer had satisfied the condition relating to stay abroad did not alter the conclusion that confiscation could not be absolute.

Conclusion: Absolute confiscation was held to be unwarranted.

Issue (iii): Whether the redemption fine and penalty required reduction.

Analysis: Although the assessable value was sustained, the vehicle had remained in departmental custody for several years. In view of this circumstance and the overall nature of the lapse, some leniency was considered appropriate in the quantum of fine and penalty.

Conclusion: The redemption fine and penalty were reduced.

Final Conclusion: The department's appeal failed, while the assessee succeeded only to the extent of reduction in redemption fine and penalty, with the confiscation sustained but not made absolute.

Ratio Decidendi: When misdeclaration justifies confiscation but the circumstances do not show a case for absolute confiscation, the authority may sustain confiscation while granting redemption on moderated fine and penalty if the valuation adopted is reasonably supported and the contrary claim is unproven.

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