TaxTMI 
TaxTMI 
2008 (9) TMI 347
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.... 3. We heard both sides. 4. The appellant purchased a Porsche Carrera Vehicle from one Shri Shailesh Kumar. Shri Shailesh Kumar also purchased it from the original importer of the car. The original importer is one Shri Jalaludheen Kunhi Thayil. On the basis of the intelligence, certain investigations were carried out by the DRI. The vehicle was seized from the possession of the appellant. It was seen that the original importer violated the EXIM Policy conditions in selling the vehicle before the period of two years from the date of import. There was also mis-declaration of the model, description of the goods, as well as the value. Hence, proceedings were initiated against four persons viz, the importer, two purchasers and the broker. On....
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....that he has imported. Customs duty is a duty on import. Hence, obviously, no one else normally be required to pay that duty. The definition of the term 'imported' in Section 2 of the Act as including at any time between the importation of the goods and their clearance for home consumption, their owner is significant. It is evidently intended to provide for recovery of duty on goods imported by one person, deposited in a bounded warehouse and cleared by another to whom they are sold or otherwise transferred. By this definition, that second person is deemed to be the importer of the goods and hence liable to pay duty. The provisions of sub-section (2) of Section 25 of the Act are an exception to this principle. These provisions have evidently....
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....that after the goods have been released, it would not be proper to impose RF from the subsequent bona fide purchasers. The observations of the Supreme Court in para 6 of the said decision are reproduced below: "6 In the instant case, it is an admitted fact that after issuing a notice as contemplated under Section 124 of the Act, to the importer of the goods in question and adjudication proceeding under Section 125 had been conducted and the goods in question were released on payment of redemption fine, in such an event it matter little whether the adjudication was under which sub-clause of Section 111 because whichever is the sub-clause, there was an obligation on the adjudicating authority to find out the market value of the goods so im....
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....umstances of this case." In view of this, the learned Advocate urged that the redemption fine is liable to be set aside. 5.3 On the other hand, the learned Departmental Representative took us through the provisions of Section 125 of the Customs Act. He said that any goods, which are held liable to confiscation, can be released on redemption fine. In the present case, it has been clearly held that for violation of the post-import condition and also for mis-declaration, the car was held confiscable. This fact is not disputed. Moreover, the car has been seized from the possession of the appellant. In view of these circumstances, he stated that there is no legal infirmity in releasing the car on payment of RF in terms of Section 125 of th....