2025-VIL-1955-CESTAT-DEL-CU
  1. Home
  2. 2025-VIL-1955-CESTAT-DEL-CU

CUSTOMS CESTAT Cases

Customs - Confiscation of a luxury car, levy of penalties - A Mercedes Benz car was imported by importer-on-record. The Commissioner rejected the declared value, re-assessed the value and ordered confiscation under Section 111(d) with an option to redeem on payment of fine, and imposed penalty. The matter was remanded by the Tribunal for de-novo consideration - Meanwhile, the appellant purchased the car partly financed by a bank loan. Later on, the DRI commenced investigations into mis-declaration of imported luxury cars. A Show Cause Notice was issued alleging mis-declaration of the car as "new" to claim benefit under Notification No. 21/2002-Customs, undervaluation, and collusion. Penalties were imposed on the appellants - Whether the car can be re-confiscated after it has already been confiscated and released on payment of redemption fine – HELD - Once the car has been confiscated and allowed to be redeemed on payment of redemption fine, it cannot be re-confiscated. After releasing the goods into the market and permitting the sale, the Department cannot initiate another proceeding to recover the alleged difference in valuation from the ultimate bona fide purchaser. The confiscation of the car in the impugned order is set aside – Further, the appellants had purchased the car in a bona fide manner and there was no breach of any legal provisions by them. Since there was no finding that the appellants had done any act or omission rendering the goods liable to confiscation under Section 111, or that they had abetted the illegal import of the car, there was no basis to impose penalties under Section 112(a) of the Customs Act - The penalty under Section 114AA was not applicable as there was no use of false or incorrect material by the appellants. The confiscation of the car and the penalties imposed on the appellants are set aside – The appeals are allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTR-9 & GSTR-9C of FY24-25
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?