Tribunal reduces penalty in Transfer of Residence Scheme violation appeal.

The Tribunal partially allowed the appeal, reducing the penalty imposed on the appellant for violating post-import conditions under the Transfer of Residence Scheme related to the sale of an imported vehicle. The Tribunal found that while the sale occurred after two years of import, the transaction's consideration and delivery happened before the expiry of the two-year period, breaching scheme conditions. However, it concluded that the appellant's involvement did not constitute a deliberate violation, leading to a reduction of the penalty imposed under the Customs Act to Rs. one lakh.

---

---

Issues:
Violation of post-import conditions under Transfer of Residence Scheme by a broker in imported cars leading to penalty imposition.

Analysis:
The case involved an appeal against an Order-in-Appeal passed by the Commissioner (Appeals), Mumbai Zone-I, regarding the violation of post-import conditions under the Transfer of Residence Scheme by a broker in imported cars. The appellant, a broker named "Shri Nalin Choksey," was accused of being involved in the sale of a Toyota Prado vehicle imported under mis-declaration. The appellant facilitated the sale of the vehicle to a buyer named Shri Roshan Somjee, which was alleged to be in violation of the two-year restriction on selling vehicles imported under the Transfer of Residence Scheme.

The appellant contended that the allegation of violating post-import conditions was erroneous as the vehicle was registered in the name of Roshan Somjee only after two years of importation, thereby claiming no violation. It was argued that the "NO SALE" condition within two years of importation was the responsibility of the importer, not the appellant. The appellant also denied abetting any offense, stating that the importer had the intention to sell the car from the beginning. Reference was made to a judgment of the Bangalore bench of the Tribunal, emphasizing that the appellant's involvement did not amount to dealing with the car knowingly liable for confiscation.

After considering the arguments from both parties, the Tribunal found that while the transfer of the vehicle to the buyer occurred after two years of import, the sale consideration and delivery had taken place before the expiry of the two-year period, thus violating the Transfer of Residence Scheme conditions. However, the Tribunal concluded that the appellant's involvement in facilitating the sale did not amount to a deliberate violation of the law. Therefore, the Tribunal held that the penalty imposed under Section 112(a) & (b) of the Customs Act was excessive and reduced it to Rs. one lakh.

In conclusion, the Tribunal partially allowed the appeal, reducing the penalty imposed on the appellant.

---