TaxTMI 
TaxTMI 
2010 (3) TMI 385
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.... dated 23-2-2010. 4. A few facts of the case are as under :- The Petitioner imported a Ferrari F 430 car vide Bill of Entry No. 698519 dated 6-2-2008 through Jawaharlal Nehru Port Trust, Nhava Sheva, Mumbai. It is case of the Petitioner that the said transaction was covered under the Dealer's invoice No. 1003 dated 12-12-2007 of M/s. Hyperformance Cars Ltd., No. 162, Union Street, Dunstable, Bedfordshire, LU6 1HB, United Kingdom. At the time of import of the said car, customs duty of Rs. 82,47,761/- was paid on an invoice value of 92,000 GBP raised by the Dealer-M/s. Hyperformance Cars Ltd., U.K. It is case of the Petitioner that the payment of customs duty to the tune of Rs. 82,47,761/- consequent to the assessment made in the Bill o....
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....n imported new car, not registered prior to importation as per Sl.No. 344(2) of Notification No. 21/02-Cus. 60% III Value of the car as declared at the time of importation (1.00 GBP=Rs. 78.55) GBP 92,000.00 x Rs. 78.55 = Rs. 72,26,600/- IV Value of service contract for warranty GBP 47,500 x Rs. 78.55 = Rs. 37,31,125/- V Duty paid on importation, on the value of Rs. 72,26,600/- in terms of Notification No. 21/02-Cus. Rs. 82,47,761/- VI Amount paid during investigation. Rs. 98,00,000/- VII Duty payable on the value of car + service contract Rs. 72,26,600/- + Rs.37,31,125/- = Rs. 1,09,57,725/-x 116% = Rs. 1,27,10,961/- VIII Duty on Service Contract of Rs. 37,31,125/- = Rs. 43,28,105/-. 25% ....
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....ities erred in coming to the conclusion that the Petitioner imported the used/second hand car vide Bill of Entry No. 698519 dated 6-2-2008. He submitted that the said imported car was manufactured in the month of December, 2007, of which, the delivery/bill of entry was prepared on 13-1-2008 i.e. within one and half month from the date of production, as such, it cannot be said to be a used car merely because it was registered in U.K. as required by the laws of the land. He further submitted that if a new car is imported the customs duty payable is only @ 116% whereas in case of the second hand car, the same is @ 167%. According to him, in the present case, the authorities treating the said imported car as second hand car have imposed customs....
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....the Petitioner imported a second hand car and therefore, the same will attract customs duty @ 167%. He submitted that the Petitioner had purchased the said car from the third party and not from the manufacturer itself as such importer is liable to pay customs duty @ 167% plus penalty and interest thereon. 10. On behalf of the Respondents, Mr. Akshay Joshi, Assistant Director, Directorate of Revenue (Intelligence), Ahmedabad filed an affidavit dated 4-3-2010 pointing out that the said imported car was actually sold by the manufacturer to M/s. Hyperformance Cars, UK and thereafter, M/s. Hyperformance Cars, UK transferred it to the Petitioner. Relevant paragraph of the affidavit dated 4-3-2010 reads thus :- "18.1 As regards para (B) of t....
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.... far as the provisional order dated 23-2-2010 is concerned, the Respondents are claiming payment of differential duty of Rs. 15,02,239/- plus interest with execution of the bond for the full value together with bank guarantee for 35% of the re-determined value. As stated the adjudicating proceedings are still pending. Final adjudication order is yet to be passed, however, till then the Petitioner's car is required to be provisionally released protecting the interest of the Revenue. 13. The Petitioner has already executed an undertaking dated 6-11-2009 stating that he will not move or remove, transfer, lease, sell, dispose of, tamper, part with or in any manner deal with the said car without the prior permission of the Director of Revenue....