2016 (9) TMI 277 - AT - Customs

Tribunal Upholds Car Confiscation for Import Policy Non-Compliance

The Tribunal upheld the confiscation of a car imported for personal use due to non-compliance with import policy conditions specified in Notification ... Restricted import and conditional release on ITC Bond - Compliance with Notification No.4/97-2002 for import of motor vehicles - Alternate routes for lawful import - licence from Ministry of Commerce or compliance with notification - Confiscation and option to redeem under Section 125 of the Customs Act - Penalty for violation of import-export policyCompliance with Notification No.4/97-2002 for import of motor vehicles - Restricted import and conditional release on ITC Bond - Confiscation and option to redeem under Section 125 of the Customs Act - Penalty for violation of import-export policy - Whether the car could be confiscated and penalty imposed where the importer failed to comply with the conditions of Notification No.4/97-2002 after taking provisional release on ITC Bond - HELD THAT: - The Tribunal found that import of the car was restricted under the import-export policy and that two lawful routes existed to import a vehicle: obtain a licence from the Ministry of Commerce or satisfy the conditions of Notification No.4(RE-2001)/97-02 dated 31/03/2001. The appellant elected the second route by producing a bond and was required to produce the prescribed certificate and comply with the notification's conditions. Having failed to produce the necessary certificate or otherwise comply with the notification, the appellant remained in violation of the import-export policy. In these circumstances the authorities were justified in treating the import as unlawful, confiscating the vehicle and offering the statutory option of redemption under Section 125 of the Customs Act, and imposing penalty for the breach.Findings of violation upheld; confiscation and penalty affirmed and the appeal dismissed.Final Conclusion: The appeal is dismissed: the importer chose the route of compliance with Notification No.4/97-2002, failed to fulfil its conditions after provisional release on bond, and therefore the confiscation and penalty imposed by the authority are sustained. Issues: Import of car for personal use, compliance with import policy, confiscation of car, penalty imposition, applicability of notificationThe judgment deals with the case of an appellant who imported a car for personal use but failed to comply with the conditions of the relevant import export policy. The appellant requested provisional release of the car on ITC Bond pending compliance with the conditions of Notification No.4/97-2002. However, as the appellant did not satisfy the conditions of the notification, the car was confiscated, and an option to redeem it on payment of a fine under Section 125 of the Customs Act was given. A penalty was also imposed on the appellant, leading to the appeal before the Tribunal.The appellant argued that the conditions specified in Notification No.4/97-2002 were intended for manufacturers of motor vehicles and not for individuals importing for personal use. They referred to a subsequent notification, No.31/97-2002, to support their claim that the conditions did not apply to them. The appellant contended that there was no violation of the import policy, and therefore, the confiscation of the car was unjustified.The Revenue's representative contended that the import of the car was restricted under the import export policy, requiring compliance with the conditions of Notification No.4/97-2002. The appellant had the option to obtain a license from the Ministry of Commerce for car importation. The Revenue argued that the appellant cannot claim that the notification was not applicable to them after choosing to produce the required certificate under the said notification.After considering the arguments, the Tribunal found that the import of the car was indeed restricted, and importers had two options to comply with the policy: obtaining a license from the Ministry of Commerce or fulfilling the conditions of Notification No.4/97-2002. Since the appellant failed to produce the necessary certificate to benefit from the notification, the import was deemed a violation of the policy. Consequently, the Tribunal upheld the confiscation of the car and the imposition of the penalty, dismissing the appeal.In conclusion, the Tribunal's decision emphasized the importance of compliance with import policies and the consequences of failing to meet the specified conditions, leading to the confiscation of the imported goods and the imposition of penalties as prescribed by law.