TaxTMI 
TaxTMI 
1999 (2) TMI 384
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....p; Shri Ramiya Karunaithi (4) Shri Bhaktavachalam Sambath (5) Shri Mani Ravi 2. The short issue involved in this case is import of 5 second-hand cars out of which 4 cars are Honda Accord and 1 car is Toyota Corona, the last one being imported by Shri Mani Ravi. Shri Mani Ravi was an NRI based at Singapore whereas the other 4 cars are claimed to be imported by the other four persons out of the 5 mentioned above when they returned from occupation in Saudi Arabia as per the transfer of residence scheme. 3. Heard Shri Lakshmi Narayana, learned Advocate for appellants who submits as follows :- (a) All these five persons requested the assistance of one Shri Aravind Rao. He is an expert in selection, purchase and shipment of second-hand cars to NRIs returning to India. While the appellant Shri Mani Ravi was known to Shri Aravind Rao as both of them were living in Singapore, the other four appellants living in Saudi Arabia were introduced to Shri Aravind Rao by a common friend namely Shri Shashi. Accordingly, all the five vehicles were shipped from....
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....ufficient evidence on record which was not taken into consideration till this stage which clearly goes to show the bona fide ownership of these vehicles by the 5 appellants noted above. 6. Thereafter, the learned advocate submitted that imports were made in accordance with Public Notice No. 202/92-97 policy period dated 30-3-94 which prescribe the following conditions to be fulfilled for the import of such cars by persons transferring residence from abroad to India :- (a) Import one passenger car with engine capacity not exceeding four cylinders and not exceeding 1600 CC whether the car is new or old. Alternatively, import of one passenger car is also permitted provided the car has been in the use of the importer for more than a year prior to his return to India. (b) The importer has stayed abroad continuously for a period of at least two years prior to his coming to India for permanent settlement. (c) The payment for the car is made abroad before his return to India. (d) The car should be imported into India within six months of the arrival of the importer in India for permanent settlement. (e) If the importer transfers his residence....
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....n the four importers of Honda Accord cars be set aside and penalty on importer of Toyota Carona car may be reduced as this is the only violation of one out of five conditions. 9. With respect to the Appeal No. C/596/98 of Shri Aravind Rao, Learned Advocate submits that as already mentioned above Shri Aravind Rao was merely offering his services for the identification and assistance in purchase of second-hand cars in Singapore at prices which were agreeable to be paid by the importers and to oversee necessary paper work formalities being completed as well as to ship the vehicles physically to Bangalore for the consolidated amounts of Rs. 30,000/- per vehicle which was received by him as compensation. Learned Advocate therefore submits that Aravind Rao is professionally engaged, inter alia, in such activities alongwith his other business of managing Tea shop in Singapore. Learned advocate says that Aravind Rao has clearly disclaimed the ownership of each of these vehicles and since he merely helped in the shipment of the cars to India, he has not violated any law relating to import of vehicles in India. Therefore, the penalty of Rs. 4,00,000/- should be totally set aside. ....
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....r delay in approaching the customs authorities at Bangalore for clearance of cars has been due to delay in receiving the original Bill of Lading itself as well as related documents like certificate of registration etc. (B) Learned Advocate submits that case-laws cited by Learned DR regarding the change of names of importers in manifest deal with facts where the original manifested importer was a fictitious person. As against that, neither Shri Aravind Rao nor the other appellants are fictitious as all other supporting documents have been produced. (C) With respect to the decision cited regarding absolute confiscation of car where engine capacity exceeded 1600 CC, learned advocate prays for a lenient view as absolute confiscation would be a too harsh decision particularly because this is a second-hand car and already substantial demurrage has accrued. 12. Learned Advocate submitted that the issue was also seized of by Hon'ble High Court of Karnataka with respect to Department's procedure to auction these vehicles had not been made known to him by appellants and therefore this could not be submitted before the Tribunal when stay applications were considered ea....