Tribunal Reduces Duty on Imported Car, Upholds Appellant's Challenge

The Tribunal modified the impugned order by reducing the assessable value of an old car brought to India under the Carnet Scheme without payment of duty to Rs. 25,000. The appellant's argument that the value should not exceed Rs. 16,000, as assessed by an Engineer, Surveyor, and Loss Assessors, was considered. The Tribunal applied the principle of best judgment and imposed a redemption fine and penalty, which were not challenged. The appeal was disposed of in favor of the appellant based on the revised assessable value for duty calculation.

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Issues:
Contested demand of Custom duty under Carnet Scheme for an old car of 1983 model brought to India without payment of duty.

Analysis:
The appellant contested the demand of Custom duty of Rs. 1,79,999/- raised against her for bringing an old car of 1983 model to India under the Carnet Scheme without payment of any Custom duty. The appellant argued that the assessable value of the car had been wrongly determined as Rs. 99,023/- by the authorities below. The appellant claimed that the value should not exceed Rs. 16,000/- as assessed by an Engineer, Surveyor, and Loss Assessors in a certificate dated 10-3-2004.

The authorities below had determined the assessable value of the car as Rs. 99,023/- without concrete evidence. The value declared by the appellant for insurance purposes could not be considered as the assessable value for Customs duty. No examination by an automobile expert or report from the company where the car was purchased was conducted. The Engineer's certificate assessed the value at Rs. 16,000/- based on the make and model of the car. Therefore, considering all facts, the Tribunal applied the principle of best judgment to arrive at an assessable value of Rs. 25,000/- for charging duty.

The Tribunal affirmed the imposition of a redemption fine of Rs. 1000/- and an equal amount of penalty on the appellant, which were not challenged. Consequently, the impugned order was modified by reducing the assessable value of the car to Rs. 25,000/-. The appeal was disposed of in favor of the appellant based on the revised assessable value for duty calculation.

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