The Delhi High Court has imposed a cost of Rs. 1 lakh while dismissing a petition challenging the seizure of a luxury car and subsequent proceedings under the Customs Act, over non-payment of import duty stating that this is a pre-planned well-designed fraud.
“This an absolutely pre-planned, well-designed import and a fraud with Union of India. Fraud with a sovereign body is a criminal offence. It cannot be viewed lightly.”
The petitioner had challenged seizure memo dated 27 October 2021 of the ‘Toyota Vellfire’ car. After hearing the counsel for the petitioner at length, the Bench noted that he is unable to point out anything about how the petitioner is in search of custody of a luxurious car.
“Whether he is an importer, purchaser, agent of importer, or has he taken it on rent? Too much ignorance has been pleaded by this Petitioner,” it observed. Further, it was submitted by the Respondent that the Petitioner has played fraud with Union of India which is evident from the seizure memo; bill of entry is also a forged one. The Respondent also contended that whenever any vehicle is being imported duty-free, the same is always conditional in nature. If the conditions are not fulfilled, import duty is bound to be paid and if the original purchaser does not pay the duty, charge is created on the commodity and therefore, the said commodity is liable to be seized, confiscated and auctioned.
In facts of present case, the Court was informed that the luxury car was imported duty free and there was violation of conditions. “In view of aforesaid, it appears that there is a fraud played by Petitioner. Petitioner is unable to point out whether he is importer or is purchaser…nothing is argued. In view thereof and the fact that the Respondent has started procedure under Customs Act, car in question is already under seizure and further proceedings will take place in accordance with law, this writ petition is dismissed with cost of Rs. 1 Lakh to be paid to the Delhi Legal Services Authority within 4 weeks,” the Court ordered.
“When the Petitioner is dealing with a premium car, and when the law is explicitly clear, Petitioner is bound to make payment of custom duty in accordance with law after adjudication of notices issued by the Respondent authority,” the Court said.
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