Nalin Choksey v. The Commissioner of Customs, Kochi
The Supreme Court held that a subsequent purchaser of an imported motor car cannot be deemed an “importer” under the Customs Act, 1962, and thus cannot be held liable to pay customs duty on the vehicle. A bench comprising Justice BV Nagarathna and Justice N Kotiswar Singh allowed the appeal of Nalin Choksey, who had purchased a Porsche car from a third party.
The Court emphasized that the liability to pay customs duty under Section 28 of the Customs Act lies with the original importer and not with subsequent buyers. It noted that the car’s registration certificate continued to list the original importer as its legal owner, and the appellant could not be classified as the owner under the Motor Vehicles Act, 1988.
The Court rejected the customs department’s argument that the appellant, as the car’s possessor, was liable for duty under Section 125 of the Customs Act, clarifying that such liability applies only when the owner is unknown. Since the importer’s identity was known, the subsequent purchaser could not be held liable.
Concluding that the proceedings against the appellant were unlawful, the Court set aside the High Court’s judgment and quashed the customs duty demand.
Case Title: Nalin Choksey v. The Commissioner of Customs, Kochi
This decision reinforces the principle that liability under customs law rests with the original importer and not subsequent purchasers of imported goods.
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