Customs confiscation of imported car set aside where valid import documents, no misdeclaration, and procedural defects were shown.

Confiscation of the imported car was considered unsustainable where the record showed import under a valid customs clearance permit and bill of entry, with ownership and import supported by the evidence. The department's material did not establish misdeclaration, unauthorised import, or transfer of title by the importer, and the matter was distinguished from connected cases involving other cars. Serious procedural defects, including unsatisfactory service of the show cause notice and no effective consideration of the importer's explanation, further undermined the action. On those facts, confiscation and penalty were set aside.

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Issues: Whether the confiscation of the imported car and the reduced penalty were sustainable in law.

Analysis: The import was found to have been cleared under a valid customs clearance permit and bill of entry, with the appellant's ownership and import of the car supported by the record. The material relied upon by the department did not establish any misdeclaration, unauthorised import, or transfer of title by the appellant, and the case against him did not stand on the same footing as the connected matters involving other cars. The record also showed serious procedural infirmities, including lack of satisfactory service of show cause notice and absence of effective consideration of the appellant's explanation. On these facts, confiscation under the cited customs provision was not justified.

Conclusion: The confiscation and penalty were set aside and the appeal was allowed in favour of the assessee.

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