Court Modifies Conditions for Release of Diplomat's Duty-Free Toyota Land Cruiser Sold to Bona Fide Buyer. The HC addressed the petitioner's challenge to conditions imposed on the provisional release of a Toyota Land Cruiser imported without duty by a diplomat ...
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Court Modifies Conditions for Release of Diplomat's Duty-Free Toyota Land Cruiser Sold to Bona Fide Buyer.
The HC addressed the petitioner's challenge to conditions imposed on the provisional release of a Toyota Land Cruiser imported without duty by a diplomat and subsequently sold. Acknowledging diplomatic immunity and the petitioner's status as a bona fide purchaser, the HC modified the conditions by removing the requirement for a bank guarantee of Rupees one crore. The vehicle was ordered to be released provisionally within a week, contingent on compliance with the remaining conditions. No costs were awarded, and related petitions were closed.
Issues: Challenge to order directing conditional provisional release of a Toyota Land Cruiser imported without payment of duty by a diplomat, subsequent sale, and seizure under Customs Act.
Summary: The Toyota Land Cruiser imported into India by a diplomat without payment of duty, subsequently sold in breach of conditions, and seized under the Customs Act. Upon the petitioner's application for provisional release, an order was issued with three conditions. The petitioner challenged the first and third conditions, arguing that the diplomat and the Embassy admitted liability for customs duty. The petitioner sought modification of conditions based on precedents from other High Courts. The respondents countered, stating that the diplomat breached import conditions, and referred to judgments dismissing similar petitions. The Court noted diplomatic immunity under international conventions but found it unlikely for the Customs Department to recover duty from the original importer, who was not in India. Recognizing the petitioner as a bona fide purchaser, the Court deemed it unreasonable to require a bank guarantee of Rupees one crore. Consequently, the Court modified the conditions, deleting the bank guarantee requirement and ordered provisional release of the vehicle within a week, subject to fulfilling the remaining conditions. No costs were awarded, and connected petitions were closed.
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