2004 (11) TMI 466 - AT - Customs

Summary

Issues:
1. Application for waiver of pre-deposit of penalty of Rs. 3.00 lakhs and stay recovery thereof.
2. Dispute regarding the claim for duty drawback under a specific heading of the Duty Drawback schedule.

Analysis:
1. The judgment dealt with an application for the waiver of pre-deposit of penalty amounting to Rs. 3.00 lakhs and the stay of recovery arising from an order by the Commissioner of Customs (EP), Mumbai. The issue revolved around the penalty imposed and the entitlement to duty drawback claimed by the exporter.

2. The core issue in this case was the classification of goods under the Duty Drawback schedule. The exporter contended that the consignment, comprising a glass mirror backed with a wooden pad and framed in a brass frame, should be eligible for the rate of duty drawback applicable to handicrafts. Conversely, the department argued that the consignment did not contain any elements of handicrafts and should be classified under a different heading for duty drawback.

3. The Tribunal noted that the dispute primarily concerned the proper classification of the goods under the Duty Drawback schedule. It was observed that the exporter's claim did not amount to misdeclaration, as the goods were available for examination during export, providing the department with the opportunity to reclassify them if necessary. The Tribunal found that there was a strong prima facie case in favor of the applicant, indicating that the penalty imposed may not be justified.

4. Ultimately, the Tribunal ruled in favor of the applicant, granting the waiver of pre-deposit of the penalty and staying the recovery during the appeal process. The decision highlighted the importance of examining the classification of goods under the Duty Drawback schedule and ensuring that penalties are imposed judiciously based on the merits of the case.

This detailed analysis of the judgment provides a comprehensive understanding of the issues addressed and the Tribunal's decision regarding the application for waiver of penalty and the dispute over duty drawback classification.