Tribunal Upholds Decision on Imported Goods Violation Resulting in Confiscation and Reduced Penalty

The tribunal upheld the decision that the imported goods were in violation of the Import Policy Notes and CMVR requirements, leading to the confiscation of the goods and imposition of a reduced penalty on the appellant.

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Issues:
Classification of imported goods under Customs Tariff Act, 1975; Violation of Import Export Policy; Confiscation of imported goods under Customs Act, 1962; Imposition of penalty under Customs Act, 1962.

Classification of Imported Goods:
The appellant imported electrical tricycles without batteries in CKD condition along with spare parts and claimed classification under specific CTH numbers of the Customs Tariff Act, 1975. The assessing authority held that the importation violated the Import Export Policy applicable at the time, specifically noting non-compliance with the Centre Motor Vehicle Rules (CMVR), 1989. The original authority ordered confiscation of the goods under relevant sections of the Customs Act, 1962, and imposed a penalty on the appellant.

Violation of Import Export Policy:
The appellant argued that the goods were declared as motor vehicles for customs purposes due to being in CKD condition and capable of assembly into functional motor vehicles in India. However, the appellant contended that the goods did not qualify as new vehicles under the Policy provisions, as they were to be assembled in India. The Revenue maintained that the imported goods were considered new vehicles under customs classification rules and needed to comply with CMVR for registration in India.

Confiscation of Imported Goods and Penalty Imposition:
The impugned order upheld the original authority's decision regarding the violation of the Import Policy Notes. The tribunal found that the imported goods were in violation of the Import Policy Notes and CMVR requirements, leading to no interference with the impugned order. The penalty imposed on the appellant was reduced to Rs. 2,00,000 considering the complete confiscation of the goods by the department.

In conclusion, the tribunal upheld the decision that the imported goods were in violation of the Import Policy Notes and CMVR requirements, leading to the confiscation of the goods and imposition of a reduced penalty on the appellant.

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