COMMISSIONER OF CUSTOMS AMRITSAR Vs. HARINDER SINGH

JUDGEMENT

(1.) The instant appeal has been filed by the revenue under Section 130 of the Customs Act , 1962 , challenging final order No. 1191/04-NB(A) dated 3-11-2004 , passed by the Customs , Excise and Service Tax Appellate Tribunal New Delhi (for brevity , the Tribunal') , claiming that the following question of law would emerge for determination of this Court :-

(2.) Brief facts may first be noticed. The Government of India , Ministry of Finance Department of Revenue issued a notification bearing No. 258/90-Customs , dated 23-10-1990 whereby exemption of duty of custom was granted for a motor car when imported into India by an Indian repatriate from Iraq or Kuwait through land customs station at Attari, Amritsar (P-2). The respondent-assessee , who was repatriated from Iraq and holder of Indian Passport No. E-134764 , imported a Toyota Crown car Model No. 1988 at assessed value of Rs. 15 lakhs , vide Bill of Entry dated 9-2-1991. The respondent-assessee claimed exemption from duty under Notification No. 258/90-Cus., dated 23-10-1990 (P-2). The aforementioned car was seized by-the appellant-revenue alleging that the respondent had misdeclared the particulars of the car. A show cause notice was issued proposing confiscation of the car and penalty. Subsequently , the Collector of Customs adjudicated the matter and vide his order dated 10-6-1993 , denied the benefit of notification dated 23-10-1990. He ordered confiscation of the car and a penalty of Rs. 3,00,000/- was also imposed.

(3.) On an appeal filed by the assessee-respondent , the Tribunal vide final order dated 28-5-1999 (P-6) [1999 112 ELT 314] set aside order of the Adjudicating Authority confiscating the vehicle absolutely. The Tribunal disposed of the appeal filed by the assessee-respondent being appeal No. C/930/93-B2. The Tribunal found that the conditions as laid down in the notification dated 23-10-1990 (P-2) were fulfilled by the assessee- respondent. Accordingly , the importer was required to show to the satisfaction of the customs authorities that the motor car was registered in the name of the importer. The allegation of the department has been found to be misplaced because the Registration Certificate produced by the importer and available on record shows that the vehicle was registered in the name of the importer , namely , Shri Harinder Singh. The Tribunal rejected the certificate issued by the Indian Embassy in Baghdad on 8-1-1991 , stating that the car was registered in someone else's name. The Tribunal further held that due consideration is required to be given to the scheme of notification dated 23-10- 1990 (P-2) , which was issued on humanitarian grounds. The Tribunal also ignored the opinion expressed by the Expert who opined that the model of the vehicle was 1990 and not 1988 as per the claim made by the assessee- respondent. The basis for ignoring the opinion of the Expert was that the Expert was never produced before the authorities and his testimony was not authenticated by cross-examination by the assessee-respondent. Accordingly , it was found that the assessee-respondent was entitled to the benefit of notification dated 23-10-1990; and concluded that the restriction imposed by paragraph 135 of import and Export Policy for the year 1990-93 have to give way to the beneficial nature of notification dated 23-10-1990. Consequently the order of absolute confiscation of the vehicle was set aside and the assessee-respondent was given an option to redeem the impugned vehicle. The penalty of Rs. 3,00,000/- imposed on the assessee-respondent was also set aside.