Mallesh Cheekoti Vs Commissioner of Customs (CESTAT Chennai)
The appeal before the CESTAT Chennai arose from an order upholding confiscation, redemption fine, and penalty in relation to the import of a used car. The appellant had worked in the UK since 2000 and, following the demise of his wife, returned to India for permanent settlement. During his stay abroad, he purchased a BMW car in December 2012 and imported it into India in June 2014, declaring its value at ₹5,00,000. As the original manufacturer’s invoice was not produced, the declared value was rejected and re-determined using Parker’s Guide, resulting in an enhanced value. The authorities also denied Transfer of Residence benefits, holding that the appellant had not satisfied the conditions under the Foreign Trade Policy due to extended visits to India during the preceding years. Consequently, the car was confiscated with an option for redemption on payment of fine, and a penalty was imposed.
The Commissioner (Appeals) rejected the appellant’s challenge, leading to the present appeal. Before the Tribunal, the appellant confined his grievance to the penalty, stating that the car had remained in customs custody since 2014 and that he was unwilling to accept redemption due to concerns over its condition. The Tribunal accepted this position and waived the redemption fine accordingly. On the issue of penalty, while noting that the import had occurred without adequate awareness of applicable laws, the Tribunal took into account the appellant’s circumstances and held that the penalty warranted reduction. Accordingly, the penalty under Section 112(a) was reduced from ₹25,000 to ₹5,000, and the appeal was partly allowed.
