2008 (5) TMI 543 - AT - Customs

Summary

Issues:
1. Stay of pre-deposit of redemption fine and penalty imposed by Order-in-Original.
2. Confiscation of imported waste paper rolls.
3. Misdeclaration of value of goods.
4. Provisional release of detained consignment.
5. Waiver of pre-deposit of redemption fine and penalty.

Analysis:
1. The application sought a stay of pre-deposit of redemption fine and penalty imposed on imported waste paper rolls. The appellant contended that the confiscated containers did not contain waste paper as claimed by authorities but paperboards. The lower authorities rejected the declared value, confiscated the consignment under Customs Act, and imposed a redemption fine of Rs. 10 lakhs along with a penalty of Rs. 2 lakhs.

2. The appellant argued that they are manufacturers of paper and imported waste paper for manufacturing purposes, citing Notification No. 21/2002 granting reduced duty for waste paper imports used in manufacturing paper pulp/paper/paperboard within factory premises. The appellant had executed a bond with the Commissioner of Customs for this purpose and requested provisional clearance of the detained containers due to heavy demurrage charges.

3. The Respondent maintained that the appellant had imported paperboards, misdeclared the goods' value, and supported the confiscation. The Respondent suggested provisional release of the consignment under strict conditions.

4. The Tribunal considered urgent disposal of the case due to high demurrage charges on the detained containers. The appellant did not challenge the authorities' valuation. The adjudicating authority found the imported paper to be customized and neatly rolled, not waste paper. The Tribunal noted the appellant's bond commitment to use waste paper for manufacturing paper products in their factory.

5. The Tribunal decided that while the appellant did not warrant complete waiver of pre-deposit, the detained consignment need not remain at the docks. To avoid demurrage charges, the goods were to be provisionally released upon a security deposit of Rs. 2 lakhs, with excise authorities supervising usage for manufacturing as per bond terms. The customs authorities were directed to clear the consignment promptly upon payment of assessed duty.

In conclusion, the Tribunal disposed of the stay application by ordering provisional release of the consignment subject to specified conditions and security deposit, ensuring compliance with bond obligations and relevant customs regulations.