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Issues: Waiver of pre-deposit of duty and penalty in a case involving excess imported processed fabrics found in a factory, along with penalties for contravention of relevant rules.
Analysis: 1. The case involved applications for waiver of pre-deposit of duty and penalties imposed on a company and its director due to the confiscation of excess imported processed fabrics in the factory. The Commissioner of Central Excise and Customs, Surat, had imposed penalties for contravention of rules along with the option to redeem the fabrics on payment of fine and duty. 2. The Tribunal considered the issue of waiver of pre-deposit of duty and penalty. It was noted that the goods were still in the custody of customs authorities and had not been cleared by the applicants. The Tribunal decided to confine the order to the waiver of pre-deposit of penalty only. The submission by the applicants that the excess detected should be set off against a shortage detected earlier was not accepted as the shortage earlier was of different products not related to the excess fabrics in this case. 3. The Tribunal found the matter to be highly debatable, especially considering the denial of job workers regarding the receipt of certain garments and the admission of excess stock by the company's director. Due to the goods still being with the Department and the plea of financial hardship, the Tribunal waived the pre-deposit of penalty imposed on the company and stayed its recovery pending appeal. However, a pre-deposit of Rs. 20,000 was directed for the director, subject to which the balance penalty pre-deposit would be waived. 4. It was emphasized that failure to comply with the pre-deposit direction would lead to the vacation of stay and dismissal of appeals without prior notice. The compliance report was required by a specified date to ensure adherence to the Tribunal's directions.
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