2013 (6) TMI 702 - AT - Customs

Summary

Issues: Stay applications dismissed for failure to deposit 50% of penalty; Application of decision in the case of S.K. Colombowala; Settlement Commission's order and its implications.

Stay Applications Dismissed: The appeals were dismissed as the appellants failed to deposit 50% of the penalty directed for hearing the appeals, as required. The learned advocate argued that the main appellant's case was settled before the Settlement Commission for undervaluation, relying on the decision in the case of S.K. Colombowala to suggest that once the main party's case is settled, cases against other parties should be closed. However, the Departmental Representative contended that the appellants were not just abetting undervaluation but actively encouraging it by providing two sets of invoices, and this was not their first offense in such activities.

Application of S.K. Colombowala Decision: The learned counsel reiterated that the decision in the case of S.K. Colombowala was based on a legal point and the specifics of how the appellants were involved in the offense were not relevant. Upon reviewing the Settlement Commission's order, it was noted that the case was settled only against the applicant and co-applicants, leaving room for further action against other noticees. Given this observation, it was deemed premature to apply the S.K. Colombowala decision without considering all statutory provisions, details of the case, and the Settlement Commission's findings. As the Commissioner (Appeals) had not delved into the merits, a remand was necessary for a fresh decision.

Settlement Commission's Order: The Settlement Commission's order indicated that the case was settled only against specific parties, allowing the Revenue to pursue action against others. In light of this, the Tribunal found it inappropriate to directly apply the S.K. Colombowala decision without a comprehensive review of all relevant aspects. Consequently, a waiver of pre-deposit was granted, and the appeals were taken up for final decision, with the appellants directed to deposit a specified amount each and report compliance within a set timeframe for further proceedings before the Commissioner (Appeals). It was emphasized that all issues remained open for consideration in the subsequent proceedings.