9911796707
|
Home
Issues: Jurisdiction of Regional Bench, Valuation for penalty, Undue hardship for pre-deposit
In the judgment delivered by the Appellate Tribunal CEGAT BOMBAY, the issue of jurisdiction of the Regional Bench to hear an appeal involving a question of valuation for the purposes of assessment was raised. The appellant contended that the valuation in question was for imposing a penalty, not for assessment, thus falling outside the purview of the Regional Bench. However, the Tribunal rejected this preliminary objection, stating that the Regional Bench can hear appeals not involving valuation for assessment purposes. The appellant, facing a penalty of &8377; 25,000, argued undue hardship in depositing the amount due to financial constraints arising from supporting his family. The respondent, on the other hand, raised concerns about safeguarding revenue interests. The Tribunal considered the obligations of the appellant, including his moral and legal duty to support his family, and the legal requirement to deposit the penalty before the appeal could be heard on merit. Regarding the jurisdiction issue, the Tribunal clarified that the Regional Bench can hear appeals even if the penalty amount is related to the value of goods, as long as the appeal does not involve a question of valuation for assessment purposes. The appellant's plea for dispensation of pre-deposit was analyzed in light of his monthly income of &8377; 1,350, and his family responsibilities. The Tribunal acknowledged the appellant's obligations but emphasized the legal requirement under Section 129E of the Customs Act to deposit the penalty demanded. The Tribunal exercised its discretion judiciously, balancing the appellant's hardships and revenue interests, and granted a stay of recovery while dispensing with the pre-deposit of &8377; 25,000. Instead, the appellant was directed to deposit &8377; 5,000 in cash within 8 weeks to avoid rejection of the appeal. Compliance was mandated within 9 weeks to maintain the stay of recovery.
|
