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Issues:
Waiver of deposit of duty and penalty for M/s. Ishaan Exports, M/s. Ashee Exports, and Suresh Agarwal. Analysis: The case involves applications for the waiver of deposit of duty and penalty by M/s. Ishaan Exports, M/s. Ashee Exports, and Suresh Agarwal. The licenses for import of polyester filament yarn (PFY) against the export of fabrics were transferred to M/s. S.V.A Udyog Viniyog Ltd., who imported goods in excess through forgery and manipulation of export documents. The Custom House initiated action to cancel the licenses due to fraud, leading to notices demanding duty and imposing penalties on the applicants. The Commissioner adjudicated on the notices, holding Ishaan and Ashee as importers and demanding duty from them. The stay applications were heard in absence of the applicants, who did not provide evidence of financial hardship. While Ashee Exports did not raise any grounds in their appeal, Ishaan Exports and Suresh Agarwal contested the Commissioner's finding that they were importers. The Tribunal noted the difficulty in labeling the exporter as the importer solely based on the import licenses, especially after transfer to another party for duty-free clearance. Referring to Rule 6 of the Foreign Trade Development Rules, the Tribunal highlighted that the importer would typically be the transferee of the licensee, not the original grantee. Citing a previous order, the Tribunal emphasized the definition of importer under the law and the lack of a concept of a deemed importer. Consequently, the Tribunal directed Ishaan Exports to deposit Rs. 7.5 lakhs, Ashee Exports Rs. 6 lakhs, and Suresh Agarwal Rs. 15 lakhs within two months for duty and penalty payment. Upon such deposits, the remaining amounts were waived, and the recovery of the same was stayed. The judgment focused on the legal definitions of importer, the implications of license transfers, and the necessity to provide evidence of financial hardship in seeking waivers of duty and penalties.
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