2015 (6) TMI 967 - AT - Customs

Waiver of pre deposit - Duty demand - confiscation of polyester fabrics imported and cleared by using tampered / forged DFRC licence which were originally issued for import of cotton printed fabrics - Held that - Live consignments confiscated are still with the custody of customs godown at Mumbai. Taking into account that the goods are still lying with the customs, the appellants are directed to predeposit the amounts towards penalty as against each of them within a period of eight weeks and report compliance on 11.8.2015. Upon such deposit, predeposit of the balance dues stands waived and recovery thereof stayed during the pendency of the appeals. - Partial stay granted.

Summary

Issues:
Confiscation of polyester fabrics using tampered DFRC license, imposition of customs duty, redemption fine, and penalties on appellants for clearance of goods, lack of personal hearing before imposing penalties, role of mastermind in obtaining bogus IEC and using forged/tampered DFRC, predeposit amounts for penalties.

Confiscation of Goods and Imposition of Duties:
The adjudicating authority confiscated polyester fabrics imported using tampered DFRC license originally issued for cotton printed fabrics. Customs duty of Rs. 95,96,399/- and Rs. 92,40,341/- was demanded, along with redemption fines of Rs. 15 lakhs for live consignment and Rs. 10 lakhs for past clearance. Additionally, penalties were imposed on the importer and co-noticees.

Lack of Personal Hearing and Penalties:
The appellants contended that no personal hearing was granted before imposing penalties, despite allowing cross-examination of various persons. The Revenue's AR supported the adjudicating authority's findings, highlighting Deepak Bajaj as the mastermind who obtained a bogus IEC for M/s. Suvidh Overseas and used forged/tampered DFRC for clearance.

Predeposit of Penalties:
After hearing both sides, the Tribunal directed the appellants to predeposit penalty amounts within eight weeks, specifying different amounts for each appellant. Upon compliance, the predeposit of balance dues would be waived, and recovery stayed during the appeal's pendency.

This judgment addresses the confiscation of goods, imposition of duties and fines, lack of personal hearing before penalties, the role of the mastermind in using forged documents, and the predeposit requirements for penalties. The Tribunal's decision aims to ensure compliance with penalty payments while allowing for the appeal process to proceed.