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Issues:
1. Waiver of pre-deposit of duty and penalties against multiple parties. 2. Duty demands confirmed on excess quantity of imported Kraft papers. 3. Imposition of penalties under Sections 114A and 112(a) of the Customs Act. 4. Prima facie case analysis for waiver of pre-deposit and penalty. Issue 1: Waiver of Pre-deposit of Duty and Penalties The judgment addresses the applications for waiver of pre-deposit of duty and penalties totaling Rs. 7,77,848/- and Rs. 1,12,173/- against two companies, M/s. Core Emballage Limited and M/s. Wadco Packaging Pvt. Ltd., respectively. Additionally, penalties of equal amounts were imposed on these companies, along with penalties on M/s. Rajesh Enterprise, Shri Rajiv Mehta, and Shri Indrajit Dhawan. The duty demands were confirmed due to the excess quantity of Kraft papers imported by the companies, not entitled to duty-free clearance under Advance Licences. Penalties were imposed under Sections 114A and 112(a) of the Customs Act based on commission/omission leading to goods being liable to confiscation. Issue 2: Duty Demands on Excess Quantity of Imported Kraft Papers The duty demands confirmed against Core Emballage Ltd. and Wadco Packaging Pvt. Ltd. were considered prima facie barred by limitation. This was due to the importers providing the Customs Authority with a Value Based Advance Licence containing a quantity restriction endorsement along with Bills of Entry for the imported Kraft paper. It was held that there was no evidence to suggest that the importers knowingly or willfully misstated or suppressed any facts, thus preventing the invocation of an extended period of limitation against them. Issue 3: Imposition of Penalties under Customs Act Penalties were imposed on the importers and their officers under Sections 114A and 112(a) of the Customs Act. The penalty on Rajesh Enterprises was imposed for commission/omission leading to goods being liable to confiscation. Similarly, penalties were imposed on the Executive Director of Core Emballage Ltd. and the Manager of Wadco Packaging Pvt. Ltd. for the same reason. However, a strong prima facie case was made out by Rajesh Enterprises, leading to the waiver of pre-deposit and penalties pending appeals. Issue 4: Prima Facie Case Analysis for Waiver The judgment analyzed the prima facie case for the waiver of pre-deposit and penalties. It was noted that there was a lack of disclosure of knowledge or reasonable belief on the part of the dealer regarding the excess quantity imported by the companies. The statement of the dealer was not incriminating, and there was no other evidence implicating the dealer. Consequently, the waiver of pre-deposit and penalties was granted, and the recovery was stayed pending appeals for all parties involved.
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