2007 (1) TMI 321 - AT - Customs

Summary

Issues: Stay application seeking waiver of deposit for drawback amount and penalty.

In this judgment by the Appellate Tribunal CESTAT, New Delhi, the appellant sought waiver of the requirement to deposit a drawback amount of Rs. 61 lacs and a penalty of Rs. 25 lacs. The demand and penalty were imposed due to overvaluation of exports of readymade garments to Moscow with the intent to obtain undue drawback benefit. Evidence showed discrepancies in the declared values at import and export stages, with payments received from strangers to the transaction. The appellant had initially deposited Rs. 10 lacs as per a previous stay order, citing financial difficulties. The Tribunal noted that the earlier pre-deposit was based on an ex-parte order, which was not applicable in the current appeal where the appellant participated in the adjudication. The Tribunal found it hard to accept financial hardship claims in cases of deliberate fraud. Consequently, the Tribunal ordered the appellant to make a further deposit of Rs. 20 lacs within eight weeks, failing which the appeal would be dismissed. The matter was scheduled for compliance reporting on a specified date, and the stay application was granted under the mentioned terms.