2009 (1) TMI 659 - AT - Customs

Summary

Issues:
1. Waiver of pre-deposit and stay of recovery regarding penalties imposed under Sec. 112 of the Customs Act.
2. Cross-examination request by the appellants and the Commissioner's decision.
3. Consideration of evidence and financial hardships by the Commissioner.

Analysis:
1. The judgment deals with applications for the waiver of pre-deposit and stay of recovery concerning penalties imposed on the appellants under Sec. 112 of the Customs Act. The penalties were imposed on the appellants based on the grounds that they rendered goods liable to confiscation under Sec. 111 of the Act. The case revolved around a consignment of 'Analgin' imported from China mis-declared as 'Lactose,' which attracted anti-dumping duty at the time. The appellants, including Shri Jignesh K. Shah, Shri Premal J. Doshi, Shri Deepak J. Mody, and Shri Ajit B. Zota, were implicated based on their statements. The appellants raised concerns about not being allowed to cross-examine certain witnesses and the lack of a personal hearing for Shri Premal J. Doshi. The Tribunal directed specific appellants to pre-deposit 50% of the penalty amounts within four weeks under Sec. 129E of the Customs Act.

2. Regarding the request for cross-examination, the Commissioner's decision was scrutinized. Shri Deepak Mody wanted to cross-examine certain witnesses, but the Commissioner considered them as his witnesses, requiring him to produce them. The order was silent on Shri Ajit B. Zota's request for cross-examination. The Tribunal observed that the Commissioner seemed to have evaluated the evidence impartially, emphasizing the motivation behind the importation of Analgin from China and the anti-dumping duty implications. The appellants failed to establish a prima facie case against the penal liability fixed by the Commissioner, and no financial hardships were claimed. The Tribunal found no grounds to waive the pre-deposit requirement fully.

3. The Commissioner's consideration of evidence and financial hardships was crucial in the judgment. The Commissioner's decision not to allow cross-examination in certain instances was reviewed by the Tribunal. The motivation behind the importation of Analgin, the anti-dumping duty implications, and the appellants' failure to demonstrate financial difficulties were pivotal factors in the Tribunal's decision to direct partial pre-deposit of the penalty amounts. The compliance report was scheduled for a specific date, indicating the procedural follow-up required post the Tribunal's decision.