2008 (12) TMI 594 - AT - Customs

Summary

Issues:
1. Requirement of pre-deposit of redemption fine and penalty under Customs Act.
2. Alleged misdeclaration of imported goods - lead strippings vs. unshredded lead.
3. Confiscation of goods under Section 111(m) of the Customs Act.
4. Imposition of redemption fine and penalty under Section 112(a) of the Customs Act.
5. Request for waiver of pre-deposit based on evidence presented.
6. Interpretation of Pre-shipment Inspection Certificate.
7. Decision on waiver of pre-deposit and stay application.

Analysis:
The case involved the requirement for the appellants to pre-deposit a redemption fine of Rs. 5,00,000 and a penalty of Rs. 50,000 under Section 112(a) of the Customs Act. The dispute arose from the import of lead strippings through Bangalore ICD instead of unshredded lead, which was mandated to be imported only through Chennai port as per the ITC Policy. The Adjudicating Authority held the goods liable for confiscation under Section 111(m) of the Customs Act and imposed the redemption fine and penalty. The appellant's representative argued that the imported items were lead strippings, not unshredded lead, supported by certificates indicating the nature of the goods and absence of explosives. The advocate requested a waiver of the pre-deposit due to a strong case in their favor.

Upon examination, the Tribunal found that the Pre-shipment Inspection Certificate clearly described the goods as lead strippings. Despite the Revenue's contention that the goods were unshredded lead, the Tribunal disagreed, emphasizing that lead strippings cannot be considered unshredded lead. Consequently, the Tribunal granted a full waiver of the pre-deposit amounts until the appeal's disposal, preventing coercive action by the Revenue during this period. The Tribunal scheduled the appeal for further hearing on a specified date and allowed the stay application.

In conclusion, the Tribunal's decision favored the appellants based on the evidence presented, particularly the interpretation of the Pre-shipment Inspection Certificate. The waiver of pre-deposit and the stay application approval indicated a preliminary assessment of a strong case in favor of the appellants, leading to a temporary relief from the financial obligations imposed by the Adjudicating Authority.