TaxTMI 
TaxTMI 
2011 (11) TMI 210
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....Entry No. 429 dated 10.11.2010 declaring the value as GBP 2857 (CIF) and the assessable value in Indian rupees as Rs. 2,04,731/-. b) The UK registration certificate submitted by the appellant indicated that the car was acquired by him only on 09.08.2010 indicating that the car was not in his use for the stipulated minimum period of one year. c) Examination of the inner parts of the engine indicated the date of manufacture as 08.02.2007. The car was found to be a high end model with all accessories like power windows, music system and that it has run around 22560 Kms. only. d) Enquiries with the manufacturer revealed that BMW car of 2007 make was priced at 51,428 GBP including UK taxes and, therefore, the price declared appeared too....
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.... order dated 02.05.2011 rejected the declared value of the imported car and re-determined the value as Rs. 18,60,725/-. He ordered absolute confiscation of the vehicle under Section 111(d) of the Customs Act. In addition, he imposed penalty of Rs. 1,00,000/- on the appellant under Section 112(a) of the Customs Act. (i) On appeal, the Commissioner (Appeals) upheld the order of the original authority except reducing the penalty from Rs 1,00,000/- to Rs. 50,000/-. 4.1. Learned advocate for the appellant challenges the order of absolute confiscation of the vehicle and also the enhancement of the value. She fairly submits that the vehicle was purchased by the appellant only on 09.08.2010 and therefore, the vehicle was not....
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....on if any, is only of a technical nature and, therefore, there is no justification for imposition of penalties and therefore, seeks setting aside the penalty. 5. Learned SDR reiterates the findings and reasoning of the Commissioner. 6.1. We have carefully considered the submissions from both sides and perused the records. Import of a car, undisputedly, requires a licence. However, a person who has lived in a foreign country for a period of 3 years and above is entitled to import a car without licence provided the vehicle was in his use for a minimum period of one year before his return to India. In the present case, undisputedly, the vehicle was procured by the appellant only on 09.08.2010 and shipped immediately thereafter as seen fr....
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....der of the Commissioner (Appeals) were passed) are not reliable documents. It is fairly submitted that no such claim regarding procuring the vehicle on auction has been made before the original authority. Why such a fairly new vehicle which has run only 22560 Kms. came for auction and who has taken on auction, whether J N Bauer Ltd. or the appellant are not forthcoming. Therefore, the basis on which letter of the garage owner claimed that the vehicle was taken on auction is not made clear. Further, the appellant, during personal hearing on 22.03.2011, has admitted that the car was purchased at a price of around Rs. 6 lakhs. If that was the case, how an invoice dated 09.08.2010 indicating a value of only 2857 pounds was produced before....
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....ave to be added, as the actual insurance is not known. Here, it is relevant to mention that during the course of personal hearing, the authorized representative of the importer, has submitted the original freight invoice, wherein it is mentioned that the actual freight incurred in transporting the impugned car is Rs. 1,48,654.84. Price: 51,428.00 GBP Deduction allowed to arrive at net of tax @ 15%: 7,714.2 Discount price: 43,713.80 Depreciation @ 46% : 23,605.45 Conversion rate 1 GBP = 70.95 INR FOB in INR: Rs. 16,74,806.00 Actual freight incurred : Rs. 1,48,654.84 Insurance @ 1.125% of FOB Rs. 18,841.56 CIF value: Rs. 18,42,302.40 Landing Charges @1% Rs. 18,423.02 Assessable va....