COMMISSIONER OF CUSTOMS, BANGALORE Vs. FIVE STAR SHIPPING CO. LTD.

JUDGEMENT

(1.) This appeal is by the revenue challenging the order passed by the Tribunal [2007 (219) E.L.T. 168 (Tri.-Bang.)] holding that the confiscation liability arrived again and the order of confiscation and fine confiscating the car in the possession of bona fide purchaser in an open market is illegal and accordingly it set aside the said levy on redemption fine. The respondent is a purchaser of an imported car, released through customs after due assessment orders, on the declared value. The importer on verification of submitted duty paid customs clearance documents and purchased the car. The Customs Department took possession of the car after seizure and initiated enquiries. The valuation of the car was ordered to be increased and consequent redemption fine of Rs. 8 lakhs arrived at on this additional valuation now arrived at. The Department ordered additional duty on the original importer and not the present respondent. However, the respondent being a purchases of the car in the market under a bona fide belief that it is customs duty paid car is now required to pay the redemption fine. Therefore, he preferred the appeal challenging the said order.

(2.) The Appellate Tribunal relying on the judgment of the Apex Court in Mohan Meakin Ltd., 2000 115 ELT 3 ] held that the authorities cannot collect the redemption fine from a bona fide purchaser in an open market and set aside the said order. Aggrieved by the same, the revenue is in appeal.

(3.) This Court admitted the appeal on 19-11-2007 to consider the following substantial question of law :-