ORDER
S.S. Sekhon, Member (T)
1. The appellant, who had returned to India after 8 years residence abroad, imported a Car and filed a Bill of Entry on 13.3.2001.
2. A Show Cause Notice dated 23.7.2001 was issued as it was proposed to fix the value of the car at Rs. 14,46,727 and the car was liable for confiscation under Section 111(d) for having been imported in violation of ITC PN3 (RE-2000)/1997-2002 dated 31.3.2000, it was alleged that it was registered in UK prior to import and was thus not eligible for exemption under Notification No. 17/2001 dated 1.3.2001.
3. The Commissioner denied the benefit of Notification No. 17/2001 dated 1.3.2001 and ordered assessments at Tariff Rates. Confiscated the car under Section 111(d) of the Customs Act, 1962 for violation of ITC PN3 dated 31.3.2001. However he gave an option to redeem the same on payment of fine of Rs. 1,75,000 and imposed a penalty of Rs. 25,000 on the importer under Section 112 of the Customs Act, 1962. He gave an alternative option of Export the car on payment of fine of Rs. 10,000 only and penalty of Rs. 25,000.
4. We have heard both sides and considered the submissions and find:
(a) There is force in the plea that the Car was shipped much before the Notification 17/2001 dated 1.3.2001 was issued, that document describes the car as new, therefore the plea of intentional misdeclaration of the old Car in lieu of new, on part of the importer cannot be accepted. We however do not accept the plea of ‘non registration’ prior to import and the qualification for exempted rates of duty made, by the appellant, on the grounds that the Registration in UK was for complying with UK rules by the dealer and owner’s name not indicated therein, should be held to mean not registered for use by anyone. We do not find Registration in the name of ‘keeper’ as pleaded, to be excluded to enable benefit of Notification No. 17/2001-Cus dated 1.3.2001. The wordings of the Notification are clear and the benefit of exemption of duty is not available if the car is registered prior to import’.
(b) As regards the finding of liability for confiscation under Section 111(d), for enforcement of DGFT PN dated 31.3.2001, we cannot accept the proposition. The cars has been shipped much before i.e. in January 2001 for import to India. The PN applicable would be PN 3 (RE-200)/1997-2002 dated 31.3.2000. The amendments made by Notification No. 4 (RE-2000) 1997-2002 dated 31.3.2001 would be applicable, only with effect from 31.3.2001 and not to the impugned import for which BE has been filed on 13.3.2001, Examining PN 3 (RE-2000)/ 1997-2002 dated 31.3.2000 we do not find any case or cause to interdict the vehicle under Section 111(d). The statement of intent as relied upon in the SCN, later retracted, could be relied and may call for a confiscation only under 111(o) i.e. a liability to arise if cleared and if Car is disposed of in contravention of the ‘No Sale’ condition of 2 years after clearance as per the PN dated 31.3.2000. The confiscation under 111(d) is not upheld nor can confiscation under 111(o) be upheld since car is not cleared.
(c) During the hearing, the learned Advocate for appellant requested for reshipment/export without fine and penalty. We agree. Since we do not find the car to be liable for confiscation, its export cannot be denied.
5. In view of our findings, we would set aside the confiscation and the consequent redemption fine imposed or and the penalties under Section 112. The permission of export of the car by the importer is granted. The appeal is disposed of in the above terms.