2026-VIL-1805-CESTAT-MUM-CU
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CUSTOMS CESTAT Cases

Customs - Denial of concessional duty and confiscation of a car imported under the EPCG Scheme alleged to be used for personal purposes in violation of authorisation conditions - Appellant company, engaged in hotel related services, imported cars under EPCG Authorizations availing concessional duty under a Notification, the car in question being cleared at one port while three similar cars were cleared at another port - Department alleged on specific information that the cars were used as private vehicles of the Managing Director and his family and not to earn foreign exchange towards export obligation, and the duty demand with interest, confiscation under Sections 111(d) and 111(o), redemption fine and penalties on the company and the Managing Director were confirmed and upheld by the Commissioner (Appeals) - Appellants contended that the identical issue on the three cars was decided in their favour by a coordinate Bench - Whether there is any violation of the EPCG Authorization conditions so as to sustain the duty demand, redemption fine and penalties - HELD - The authorization conditions in respect of this car are identical to those considered by the coordinate Bench in the case of the same appellants, and the facts being exactly similar, this Bench cannot decide the issue differently. The coordinate Bench had found that the allegation of non-fulfilment of export obligation was premature as the period for fulfilment had not expired when the SCN was issued, that the actual user test stood satisfied by the substantial foreign exchange earnings declared and not disputed, that violations relating to vehicle registration and insurance are the concern of the authorities concerned and not Customs, and that Revenue produced no documentary evidence beyond mere allegations. The Appellants had submitted the installation certificate, registration as a tourist taxi, certificate of foreign exchange earnings and requests for Export Obligation Discharge Certificate, and the competent authority confirmed fulfilment and later issued the certificate, the non-production of which at adjudication was beyond the control of the Appellants - Non-compliance with the conditions of the EPCG Scheme cannot legally be sustained, the duty demand, redemption fine and penalties are not sustainable, the impugned order is set aside and the appeals are allowed
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