2003 (10) TMI 593 - AT - Customs

Summary

Issues: Duty demand confirmation, waiver of pre-deposit of penalty

The judgment by the Appellate Tribunal CESTAT, Mumbai, involved the confirmation of a duty demand of Rs. 22,92,446 on the shortage of gold and diamonds. The primary issue was the waiver of pre-deposit of penalties of Rs. 10 lakhs on M/s. Trojan Jewellery and Rs. 5 lakhs on Shri Sameer Shah, General Manager. The Tribunal considered the Bank Guarantee of Rs. 24 lakhs valid until December 2003, covering the penalty amounts, as highlighted by the counsel for the applicants. However, the Departmental Representative argued that the Bank Guarantee should only be considered for the company, not the individual.

Regarding Shri Sameer Shah, the General Manager, the Tribunal noted his explanation for using diamonds from the local market due to the urgent execution of an export order. It was found that the imported diamonds meant for export were in stock during the customs officers' visit, indicating no misappropriation. Considering these facts, the Tribunal waived the pre-deposit requirement of penalty for both M/s. Trojan Jewellery and Sameer Shah, directing them to maintain the Bank Guarantee until the appeal's disposal. Ultimately, the applications for waiver were allowed by the Tribunal.