Customs confiscation and redemption relief turned on proof that a foreign vehicle was unlawfully retained and lacked lawful title.

A foreign-origin Mercedes Benz was treated as the same vehicle imported under carnet because the chassis number in the seizure record, carnet register and registration book substantially matched, while the engine-number variation was considered insignificant. The claimed Hyderabad registration was found fictitious, no NOC from Hyderabad was produced, and there was no documentary proof of purchase from STC. On that basis, the vehicle was treated as unlawfully retained in India and confiscation under Section 111(d) of the Customs Act was upheld. Relief by redemption under Section 125 was refused because the appellant had not proved lawful title or bona fide entitlement, making the discretion to grant redemption unavailable on the facts.

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Issues: Whether the car was the same vehicle imported under the carnet facility and, if so, whether confiscation under Section 111(d) of the Customs Act was justified and relief under Section 125 of the Customs Act was available.

Analysis: The vehicle was a foreign-origin Mercedes Benz not shown to have been lawfully imported. The chassis number in the seizure panchnama, carnet register and registration book substantially tallied, and the variation in engine number was treated as insignificant in the face of the matching chassis number. The initial Hyderabad registration was found to be fictitious, no NOC from Hyderabad was produced, and no documentary proof supported the claim of purchase from STC. In these circumstances, the vehicle was held to be the same as the one imported under carnet and to have been illicitly retained in India. Since the appellant had not paid the purchase price and had no established lawful interest in the vehicle, the Tribunal declined to exercise discretion under Section 125.

Conclusion: Confiscation under Section 111(d) of the Customs Act was upheld and the request for release on redemption was rejected.

Ratio Decidendi: Where a foreign-origin vehicle is shown to be the same as the one imported under carnet and the evidence establishes unlawful retention or import, confiscation is sustainable; redemption under Section 125 is discretionary and need not be granted when lawful title or bona fide entitlement is not proved.

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