Judgment:
1. This appeal pertains to demand of duty for non-compliance of the provision of Notification No. 258/90-Cus., dated 23-10-1990.
2. The facts of the case are that the respondent imported a motor vehicle through Land Customs Station, Attari Road. The respondent herein filed a B/E on 22-1-1991 claiming benefit of duty exemption provided under Government of India's Notification No. 258/90-Cus., dated 23-10-1990 and 259/90-Cus., dated 23-10-1990 on the plea that the motor vehicle had been imported by him from Kuwait. The motor vehicle was released to the appellant under Section 143 of the Customs Act, 1962 on execution of Bond and after production of CCP within two weeks and the clearance of the vehicle was allowed on assessing the same to nil duty in terms of Notification No. 258/90-Cus. On subsequent scrutiny of the relevant documents like passport, registration papers of the car it was noticed after the break of war in Kuwait on 2-8-1990, the appellant came to India on 23-8-1990 by air at Bombay and went back to Jordan. The passport further indicated that the respondent did not visit Kuwait/Iraq. One of the conditions of the Notification was that the importer has travelled from Iraq or Kuwait in the said motor vehicle before entering the Land Customs Station at Attari Road. But in the instant case, the Department alleged that since the respondent had not travelled from Kuwait or Iraq but had brought a car from Jordan, he was not entitled to exemption in terms of Notification No. 258/90-Cus., dated 23-10-1990, therefore, a show cause notice was issued to the respondent asking him to explain as to why duty amounting to Rs. 1,68,938/- should not be demanded from him.
3. In reply to the show cause notice, the respondent submitted that he was born at Kuwait and had been staying at Kuwait since his birth; that during his stay in Kuwait, the respondent had purchased the car in 1985; that he had to leave Kuwait due to war and had travelled in his car from Kuwait to Amman via Tarheel Customs Check Point on 17-10-1990; that he entered Jordan on 18-10-1990 and left the car at Amman in the hope that the position would change and returned to India; that since the war continued, he went back to Amman on 22-11-1990; that after completing the necessary formalities, he left Amman on 24-12-1990 and travelled to India via Syria, Turkey, Iran and Pakistan; that he entered India through the Attari Road Border on 23-1-1990; that the car was released; that he sent the copies of CCP to the Attari Border office on 18-5-1991. It was contended by the respondent that the exemption under Notification No. 258/90-Cus. was admissible to him.
After considering the submissions the ld. Assistant Collector confirmed the demand. On appeal, the ld. Collector (Appeals) set aside the order of the Assistant Collector and released the car on the ground that the car was in possession of the respondent and was registered in his name since 1985; that the car was left in Jordan on 23-10-1990 as is evident from the letter of the Indian Embassy; that the respondent also produced CCP granted by the Chief Controller of Imports-Exports, therefore, the conditions of the Notification were fulfilled.
4. Shri Jangir Singh, the ld. DR submitted that in the instant case the car was not driven from Kuwait/Iraq and therefore, the conditions of the Notification No. 258/90-Cus. were not fulfilled and therefore, the lower authorities have rightly demanded duty.
5. Shri R.K. Mehta, ld. Advocate with Ms. Mana Chakraborty, ld.Advocate appearing for the respondent herein submitted that all the conditions of the Notification were fulfilled. They submitted that the position was explained in reply to the show cause notice; that the Chief Controller of Import-Exports had given the CCP after verifying the facts. It was also clarified by the ld. Counsel that no doubt the car first travelled from Kuwait to Amman (Jordan) and then from Jordan to Attari Land Customs Station, India. He submitted that though there was a break of journey at Jordan, the fact remains that the car travelled from Kuwait to Attari Land Customs Station and therefore, all the conditions of the notification have been fully complied with and therefore, prayed that the impugned order may be upheld and the appeal may be rejected.
6. Heard the submissions of both sides. We find that Notification No.258/90-Cus., dated 23-10-1990 stipulates as under subject to the following conditions: (i) the importer produces evidence to the satisfaction of the officer not below the rank of a Deputy Collector of Customs that - (a) the said motor car was registered with the appropriate authorities at Kuwait or Iraq on or before the 31st day of July, 1990 in the name of the importer; (b) the importer has travelled from Iraq or Kuwait in the said motor car before entering the Land Customs Station at Attari; (ii) the importer shall not part with the motor car within a period of 5 years from the date of importation by way of sale, transfer, loan or any other manner and the importer gives an undertaking to this effect to the Assistant Collector of Customs, Amritsar at the time of clearance of the car; (iii) the importer shall inform the Assistant Collector of Customs or Central Excise having jurisdiction over the place where the importer is going to reside in India by a registered letter or by personally deliverying the letter in his office against acknowledgement, that the importer has brought the said motor car to the said place availing of the benefit of this notification, giving full particulars of the motor car with or without accessories and shall undertake to produce the motor car before the said Assistant Collector as and when required by him to verify the possession of the motor vehicle with the importer; (iv) the importer at the time of clearance gives a declaration to the Assistant Collector of Customs, Amritsar that no other motor car has been imported by him or any member of his family in terms of this notification.
Explanation:- For the purpose of this notification, 'Indian repatriate from Iraq or Kuwait' means an Indian national - (1) who has been ordinarily residing in Kuwait or Iraq immediately before the 31st day of July, 1990; (2) who leaves or has left Kuwait or Iraq for India on or after the 2nd day of August, 1990; and who produces evidence to that effect to the satisfaction of an officer not below the rank of a Deputy Collector of Customs.
On a scrutiny of these conditions, we find that the motor car was registered with the proper authorities at Kuwait before 31st day of July, 1990. We also observe that the respondent travelled with the car from Kuwait to Amman (Jordan) and later on from Amman to Attari Land Customs Station, India. We also observe that the respondent has ordinarily been residing in Kuwait immediately before 31st of July, 1990. From his passport, we also observe that the respondent had left Kuwait after 2-8-1990. From the above analysis of the facts vis-a-vis the conditions of the Notification, we find that the only difference is that the respondent herein had not directly came from Kuwait to India in one spell but had deposited the car in Amman and then had travelled in the car from Amman to Attari Land Customs Station, India. We find that the car was left in Amman and was later on collected from Amman.
This fact has been supported by the letter of the Indian Embassy, Jordan. We also observe that there is no condition in the Notification that journey in the car between Kuwait and India could not be broken.
The car no doubt had travelled from Kuwait to the Land Customs Station at Attari and therefore, we hold that condition No. (i)(b) is fully fulfilled and thus the respondent herein is entitled to the exemption under Notification No. 258/90-Cus., dated 23-10-1990.
7. In view of the above findings, we do not find any legal or factual infirmity in the order of the ld. Commissioner (Appeals).
8. In the result, the impugned order is upheld and the appeal is rejected.