2001 (9) TMI 1020 - AT - Customs

Summary

Issues:
1. Stay application for waiver of pre-deposit of duty and penalty amounts.
2. Non-fulfillment of export obligation and minimum value addition.
3. Confiscation of imported and indigenous capital goods and raw materials.
4. Allegations of failure to export stock of canned mushrooms.
5. Failure to inform Development Commissioner about export obligation.
6. Prima facie case for complete waiver of pre-deposit.

Analysis:

1. The appellants filed a stay application seeking a total waiver of pre-deposit of duty and penalty amounts mentioned in the impugned order. The appeal was against an order confirming customs duty, penalty, and confiscation of imported and indigenous capital goods and raw materials under relevant sections of the Customs Act and Central Excise Rules.

2. The case involved allegations of non-fulfillment of export obligation and minimum value addition by the appellants, who were a 100% Export Oriented Unit (EOU) engaged in manufacturing canned mushrooms. The Commissioner found against the appellants on these grounds, leading to the imposition of duties and penalties.

3. The Commissioner's order included the confiscation of imported capital goods and raw materials valued at Rs. 284.94 lakhs and indigenous capital goods and raw materials valued at Rs. 19.50 lakhs. The appellants had exported canned mushrooms during specific years but ceased production in 1996.

4. The show cause notice alleged that the appellants failed to export a stock of canned mushrooms valued at Rs. 19,94,154/-, involving duty of Rs. 1,01,398/-. The appellants disputed these allegations, claiming they had exported the canned mushrooms and had sought de-bonding of their unit.

5. The appellants had applied for de-bonding their unit, but there was no evidence that the customs authorities informed the Development Commissioner about the export obligation non-fulfillment. The letter from the Government of India emphasized the need for coordination between customs and development authorities in such cases.

6. Considering the facts and circumstances, the Tribunal found a strong prima facie case in favor of the appellants. They granted a complete waiver of the pre-deposit of duty and penalty amounts, staying the recovery until the appeal's disposal. The Tribunal refrained from definitive findings on the issues to avoid premature opinions on merits, ordering an early hearing of the appeal.