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Issues:
Waiver of pre-deposit of duty and penalties for export of cordless microphones, mis-declaration of value, issuance and sale of import licenses, imposition of penalties on involved parties. Analysis: The applicant filed for waiver of pre-deposit of duty and penalties relating to the export of cordless microphones. The case involved the export of 26 consignments of cordless microphones by M/s. Unicorn Industries, with discrepancies in the declared value. Subsequent investigation revealed that the actual value declared by the importer was significantly lower than what was declared at the time of export. This led to the issuance of import licenses under the DEPB Scheme, which were then sold to other importers for duty-free imports. Proceedings were initiated against M/s. Unicorn Industries, the proprietor, and other involved parties, including the forwarding agent and the Customs Inspector who examined the goods. The applicant argued that they did not directly import the goods under the licenses and that proceedings against other importers were dropped. They also claimed that the export was based on provisional assessments following market inquiries. The applicant relied on the Deputy Commissioner's statement confirming the market inquiry before final assessments. Additionally, they highlighted that the import licenses were still valid and not canceled, questioning the duty demand from M/s. Unicorn Industries. On the other hand, the Revenue contended that documents from US Customs indicated undervaluation at the time of transshipment, leading to higher DEPB benefits. The Revenue acknowledged issuing show-cause notices for canceling the import licenses due to the overvaluation. However, the duty demand from M/s. Unicorn Industries was primarily based on their export value declaration and subsequent sale of import licenses. Ultimately, the Tribunal found in favor of the applicant, stating that the duty demand from M/s. Unicorn Industries, who did not directly import under the licenses, was not sustainable. Given the circumstances and the strong case presented by the applicant, the pre-deposit of duty and penalties were waived for the appeal hearing, and the stay petitions were allowed. The judgment was dictated and pronounced in open court on 9-5-2006 by S.S. Kang, Vice-President.
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