Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   Higher oil prices, GST may boost states revenue by Rs 37,400 crore in FY19  *   These taxpayers no more at mercy of GST intermediaries *  Budget 2018: No fiscal derailment, but a lot rides on GST; expect caution from RBI *  GST: E-way bill implementation deferred due to glitches *  Homebuyers must avoid traps on the name of NO GST Impact *   Govt will formulate a comprehensive gold policy to develop gold as an asset class *   Government to evolve to asign a unique id to every individual enterprise. *   1.48 lakh crore for rail budget. *   7148 Crore to be sanctioned to textile sector. *   3700 corore for SME industry *  16000 crore for free electricity connection *   Government ignored warnings over GST rollout: sources *  GSTR 3B questionaire introduced- To be filled before filing return *  Advisory mail  to all the taxpayers received from GSTN *   Advisory group on GST submits report, suggests changes *   GST lifted oil demand on higher vehicle sales, says report *   Moody’s gives thumbs up to GST, demonetisation  *   Pass on rate cut benefits immediately, companies tell traders *   Focus will now be on simplifying forms, IT processes under GST: Sushil Modi *  Tax rates lowered on consumer goods,only luxury goods taxed @ 28% *   Businesses can revise GST transition claim form now *  Multiplex owners in UP demand clarity on refund as tax exemptions go away after GST *   GST compliance: A case of much ado about nothing *  PM hints more relief for traders & businesses to ease GST compliance burden *  Infosys deploys more people in states to ease GSTN load *   Further reforms are needed for the GST to succeed *   GST impact! Massive stock clearance discounts on apparels, gadgets likely in December *  Kerala HC releases Detained Goods since State has No Power to make Rules to regulate Inter-State movement of Goods under GST *  Infosys is to blame for GST Network glitches, say government officials *   Publishers versus authors: Who will pay GST on royalty?
Subject News *  GST Council to discuss annual return forms; experts expect reconciliation with ITR. *  Panel Of Ministers Mulls 1% Cess On Luxury Items, Tobacco To Help Farmers *  GST Council to consider rate cut on items with low revenue impact on July 21 *  E-way bills have increased our, liability – transporter says *  One year of GST: the successes,failures and what's next on the agenda *  GST Rate cuts could come sooner *  GST Is Not All That Bad-small Businesses  *  Govement Extends Sale Of Pre-GST Goods With Stickers Of Revised Price Till July 31 *  Government Collects Rs 95,610 Crore GST In May *  28th GST Council Meeting Date announced *  Rs. 672 Crore Worth GST Evasion Detected In Jaipur *  Rs 38,062 Crore Refund Claims of Exporters were cleared Till June 16 *   Finance Ministry Likely to Launch Annual GST Return Forms in Next Council Meet *   Taxpayers can now change email, mobile number under GST system. Here's how to do it  *  Rs 70-bn GST refunds of exporters cleared *  Gujarat tops e-way bill collection since April *  Tax authorities send notices to businesses for less IGST input credit claim *  Petrol, diesel rates: Reduction in oil duties best solution to check fuel price rise *  GST council to discuss about bringing natural Gas in GST *   GST Council is working towards rationalizing GST rates *  GST Council approves monthly return filing system to come into force in six months. *  No E-way Bill is required in West Bengal for Intrastate *  Rate notified on PSLC and REC   *  No Late Fee for Delayed filing of  GSTR-5A - Non Resident OIDAR Service Providers *  CBIC clears double taxation under GST kept in bonded warehouses *  Update on New Functionality on GST Portal : Tracking ARN for Exports  *   RBI policy: GST-hit small business get more time, money *   GST’s e-way bill set for a month-end rollout after tech glitches pushed it off-track on Feb 1 *  GST on Bitcoin-Crypto currency trade may get taxed 18% *  GST on Electric Car Batteries Could Come Down Drastically  

Comments

Print   |    |  Comment

PJ/Case Law/2016-2017/3450

whether the imported goods be confiscated if appellant fails to comply with the conditions of notification?
 

Case - SHIPPING AGENCIES DEPE GLOBAL P. LTD. VersusC.C. (IMPORT), NHAVA SHEVA
Citation- 2017 (345) E.L.T. 248 (Tri. - Mumbai)
Issue-  whether the imported goods be confiscated if appellant fails to comply with the conditions of notification?
Brief Facts–The appellant, M/s. Depe Global Shipping Agencies Pvt. Ltd. imported a car for use by the company. The import of car was restricted as per the relevant import export policy and not permitted except against a licence or in accordance with the public notice issued in this behalf. As the importer was unable to comply with the said condition and as per their request the car was provisionally released on ITC Bond pending compliance with the conditions of the Notification No. 4/97-2002, dated 31-3-2001 by the department of commerce. The appellant failed to satisfy the conditions of the said notification and therefore, the car was confiscated and an option to redeem the same on payment of fine under Section 125 of the Customs Act was given. A penalty was also imposed on the appellant. Aggrieved by this order, the appellants are in appeal before the Tribunal.
Appellant’s Contention- The learned Counsel for the appellant argued that the Notification No. 4/97-2002, dated 31-3-2001 was not applicable to them as the same was intended for the manufacture of cars. He pointed out that the Clause 5(II)(c) of the said notification required the following from the importer or dealer of motor  vehicles :
“Whoever being an importer or dealer in motor vehicles who imports or offers to import a new vehicle into India shall, -
(i)         at the time of importation have valid certificate of compliance as per the provisions of Rule 126 of Central Motor Vehicle Rules (CMVR), 1989, for the vehicle model being imported issued by any of the testing agencies, specified in the said rule;
(ii)        be responsible for all the provisions assigned to the manufacturer as per Rules 122 & 138 of CMVR, 1989 and for issuing Form 22 as per provisions of CMVR 1989; and
(iii)       give an undertaking in writing that the proof of compliance to conformity of production as per rule 126A of CMVR shall be submitted within six months of the imports. In case of failure to do so, no further import of new vehicle of that model shall be allowed thereafter.
He further argued that these conditions are meant for the manufacturers of motor vehicles who intend to import the prototype of motor vehicles. He argued that these conditions cannot be complied with individual who intended to import for personal use. He further pointed out that Notification No. 31/97-2002, dated 14-9-2001 clarified as follows :
“2.The conditions relating to import of vehicles [as classified under Chapter 87 of ITC (HS) Classifications of Export and Import items, 1992-2002] as per Notification No. 4 (RE-2001)/97-2002, dated 31-3-2001, shall not be applicable on imports made under the provisions of aforementioned Public Notice No. 3 dated 31-3-2000. However, these imports shall be subject to the condition that, the vehicle should have right hand steering and controls (applicable on vehicles other than 2 and 3 wheelers).
3.The import of vehicles [as classified under Chapter 87 of ITC (HS) Classifications of Export and Import Items, 1997-2002] by Foreign Diplomats and Other Privileged Persons in this category, who are exempt from payment of customs duty shall be exempt from all the conditions of Notification No. 4(RE-2001)/97-2002, dated 31-3-2001. However, such imported  vehicles cannot be sold in India except to another diplomat or privileged person and are compulsorily required to be re-exported. This exemption shall be applicable on all imports made subsequent to 31-3-2001”.
In view of the above, he argued that there has been no violation of ITC and therefore, the car could not have been confiscated.
Respondent’s Contention- The learned AR for the Revenue argued that the notice clearly pointed out that the import of car was restricted under import-export policy. He pointed out that the show cause notice clearly stated that the import can be allowed against a licence or in accordance with the public notice issued in this behalf. (Notification No. 4/97-2002, dated 31-3-2001). The appellant chose to produce the certificate required under Notification No. 4/97-2002 and gave the bond accordingly.
He argued that it was open to the appellant to approach the Ministry of Commerce for a licence to import car. In these conditions they cannot claim that the Notification No. 4/97-2002 was not applicable to them.
 
Reasoning of Judgment –after going through rival submissions they held that the import of car was restricted. Anyone wishing to import a car has alternate route. The first route was to obtain a licence from the Ministry of Commerce and the 2nd route was to fulfil the conditions of Notification No. 4/97-2002. The appellant chose the second route and had failed to produce necessary certificate to avail the benefit of said notification. In these circumstances, the import of car was in violation of import-export policy. The impugned order rightly confiscated the car and imposed penalty. The appeal was therefore, dismissed.
 
 
Decision:-Appeal dismissed.
Comment – The gist of the case was that to import a car under Notification No. 4/97-2002, all the conditions are to comply with. The appellant herein failed to produce necessary certificate to avail the benefit of said notification and hence the import was considered to be in violation of import-export policy. Considering same the tribunal held confiscation and imposition of penalty to be correct.
Prepared by- NEHA

 
 
Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com