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Issues: Importation of second-hand machinery, misdeclaration of year of make, requirement of specific license, demand of duty, waiver of pre-deposit and stay of recovery.
Importation of Second-Hand Machinery: The appellants imported second-hand machinery and filed a Bill of Entry claiming EPCG benefit. The machinery's year of make was initially declared as 1996, but upon inspection, it was found to be manufactured in 1993. As per regulations, machinery over 10 years old required a specific license for importation. The appellants then applied to the DGFT for a license, which was not deemed necessary for this particular machine. Considering these facts, the Tribunal granted waiver of pre-deposit and stay of recovery in relation to the penalty amount. Misdeclaration of Year of Make and Demand of Duty: The impugned order demanded duty of Rs. 7,47,797 from the assessee due to the denial of EPCG benefit. The EPCG license specified the year of make as 1996, but the importer had already accepted 1993 as the year of make. This discrepancy indicated a misdeclaration by the importer. However, the provisional release of the machine was permitted against a Bank Guarantee of Rs. 13.1 lakhs, which is still active with the department. The Tribunal considered the precedent where waiver and stay were granted based on the assurance of keeping the Bank Guarantee active during the appeal. In this case, the Bank Guarantee amount exceeded the duty amount, and the appellants committed to maintaining it until the appeal's final disposal. Consequently, the Tribunal granted waiver of pre-deposit and stay of recovery for the duty amount, contingent on the continuous activation of the Bank Guarantee during the appeal process.
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