ANITA SINGHAL Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) APPELLANT in Appeal No. C/399/93 -A an NRI was staying in U.S.A. She thought of returning to India for good. To have a car for her use in India, she placed orders with M/s. Volks Wagen for an Audi 80 car. That car was covered by Invoice No. 266354 -NA, dated 2 -3 -1988. Duty on the value of the car, as seen from the invoice, was paid. Appellant used the vehicle for some time during which it met with accident. Subsequently, she sold it to her brother -in -law and he is possessing the vehicle.

(2.) CUSTOMS authorities came to know that vehicles manufactured by Volks Wagen are being imported into India without paying proper Customs Duty. Directorate of Revenue Intelligence went into that question. On the basis of the information gathered, proceedings were initiated against the importers. Since the appellant got one Audi 80 imported, she was also a recipient of Show Cause Notice dated 19 -2 -1991. She was called upon to show why the car should not be confiscated under Section 111(m), 111(o) and 111(d) of the Customs Act read with Section 3(2) of the Imports and Exports (Control) Act, 1947 and why Customs Duty amounting to Rs. 3,49,718/ - should not be realised under Section 125(2) read with Section 28(1) of the Customs Act and why penal action should not be taken under Section 112 of the Act. She filed detailed reply to the Show Cause Notice. The contention raised by her were dealt with by the Collector of Customs, Bombay alongwith the cases of other importers by Order -in -Original No. CAO No. 12/93 CAC, dated 28 -1 -1993. As per that order, as far as it relates to the appellant herein, the assessable value of the car was taken as Rs. 1,54,269/ - as against the declared assessable value of Rs. 1,25,551/ - after finding the car to be above 1600 CC. Consequent on this fixation of assessable value, short levy of Customs Duty was found to be of Rs. l,76,583/ -which the appellant was directed to pay. The Collector further ordered the confiscation of the vehicle under Sections 111(d) and 111(m) of the Customs Act giving the option to redeem it on payment of fine of Rs. 1.5 Lakhs. Personal penalty of Rs. 20,000/ - was also imposed on the appellant under Section 112A of the Customs Act. The correctness of this order of the Collector is under challenge in the appeal in Appeal No. C/399/93 -A.

(3.) WHILE passing the Order -in -original, ld. Collector framed the following charges and the findings arrived at by him thereon is as given below : -