2006 (7) TMI 373

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....Kumar, DR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. -  The appellant is a registered tour operator. It imported one used Mitsubishi Delica Car at Nhava Sheva Port and filed a Bill of Entry dated 9-5-2004 for its clearance. The declared CIF value was Rs.3,60,000/-. 2. The appellant sought clearance of the car under Policy relating to the import of second-hand ca....

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.... The appellant contended that this objection was not correct inasmuch as car is a "machinery" and definition of capital goods under the Import Policy covers "any machinery". This contention of the appellant was not accepted in adjudication as well as in first appeal and the car was confiscated under Section 111(d) of the Customs Act and a penalty of Rs. 3.60 lakh imposed on the appellant under Sec....

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.... cars is "Restricted" under Import Policy. Further, while para 5.4 in Chapter 5 ("Imports") permits import of second hand capital goods in general, paras 5.21 and 5.22 are specific to the import of vehicles by travel agents, tour operators etc. Those paras read as under: 5.21 Travel agents, tour operators, restaurants, and tourist transport operators and other units for tourism, like adven....

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....stipulated categories are eligible for the import and that too within the indicated value limits. When the import of an item is specifically "restricted", that restriction cannot be set at naught by allowing its import under a general provision relating to import of machinery. The valuation undertaken also is not required to be interfered with as the same has been done in conformity with the Custo....