Power of attorney for imported car did not amount to sale or parting with vehicle, so exemption benefit was retained.

Execution of a general power of attorney for the maintenance and safety of an imported car did not amount to sale or parting with the vehicle for purposes of Notification No. 258/90-Cus. The exemption was subject to a restriction against sale or transfer-like disposal, but the Tribunal accepted that the arrangement left the car available for inspection and did not divest the importer of possession or control in a manner inconsistent with the condition. The Commissioner (Appeals) was upheld on the factual and legal effect of the power of attorney, and the exemption benefit was retained.

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Issues: Whether execution of a general power of attorney in favour of another person for maintenance and safety of an imported car amounted to sale or parting with the car so as to deny the benefit of Notification No. 258/90-Cus. dated 23-10-1990.

Analysis: The imported car was allowed exemption subject to the conditions in the notification, including the restriction against sale or parting with the vehicle. The Tribunal found that the execution of a general power of attorney did not amount to sale or parting with the car. The car was available for inspection and the reasoning of the Commissioner (Appeals) on the factual and legal effect of the arrangement was accepted.

Conclusion: Execution of the general power of attorney did not violate the exemption condition, and the benefit of the notification was not lost.

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