2013 (8) TMI 886 - AT - Customs

Summary

Issues involved:
The issue involves a Stay Petition for waiver of pre-deposit of penalty imposed on the appellant under Section 114 of Customs Act, 1962.

Summary:

Issue 1: Classification of Exported Product
The appellant exported Potassium Chloride and claimed it as freely exportable. The Departmental authorities classified the product as a restricted item. The appellant argued that the exports were made before the product was classified as restricted. The Tribunal found merit in the appellant's contentions, noting that the product was classified as freely exportable under the Export Policy at the time of export. The Tribunal disagreed with the lower authorities' classification of the product as restricted, leading to the waiver of the penalty under Section 114 of the Customs Act, 1962.

Conclusion:
The Tribunal allowed the Stay Petition, holding that the appellant had a strong prima facie case for the waiver of the penalty amount. The recovery of the penalty was stayed until the appeal was disposed of.

Note:
The judgment was delivered by Shri M.V. Ravindran, Member (J) and H.K. Thakur, Member (T).