COMMISSIONER OF CUSTOMS Vs. JASPREET SINGH JOLLY

JUDGEMENT

(1.) This common order will dispose of two appeals, involving similar questions of fact and law. The substantial question which the appellant urges is whether the Central Excise and Service Tax Appellate Tribunal (the Tribunal) fell into error in reducing the redemption fine and penalty amount imposed upon the respondent/importer in respect of the Hummer H2 imported by each of them. The brief facts are that the assessee respondent in the first case, Sh. J. S. Jolly and the respondent/assessee in the second case, Sh. M. S. Raksha filed bills of entry on 24.01.2008 and 11.02.2008 respectively, for the car, described as "brand new car" Hummer H2 Right Hand Drive. In both cases, the cars were imported from the United Arab Emirates (UAE) at an identical unit price of US$55,000 CIF. The goods were examined on first check basis and it was held that they confirmed with the invoice packing list and Bill of Lading. The duty determined was Rs. 24,95,180/- in Sh. J. S. Jolly's case and Rs. 24,92,041/- in Sh. M. S. Raksha's case.

(2.) The Customs authorities were of the opinion that the imports violated the conditions contained in Chapter 87 of the Customs policies, particularly, para 2(II)(a)(iv) and 2(II)(c). In both cases, the importers had declared that the country of manufacture was United States whereas the vehicles had been imported from Thailand. Furthermore, the Exim Policy conditions had exempted cars with FOB value of less than US$40,000/- from conditions specified in para 2(II)(c) subject to importer furnishing tax approval as provided for by Policy Circular No. 26 dated 09.02.2004. The authorities determined that the vehicles were liable to be confiscated as per Section 1(11)(d) of the Customs Act and the importer was liable to pay penalty under Section 112(a)(i) of the Act.

(3.) The importers, by separate requests sought waiver of issuance of Show Cause Notice and requested personal hearing. After grant of such opportunity, the Commissioner, i. e. the Primary Adjudicating Authority, by order dated 18.06.2008, directed confiscation and penalty. In both cases, the penalty imposed was Rs. 2,25,000/- on each importer and redemption fine of Rs. 5,50,000/-.