2015 (4) TMI 1010 - AT - Customs

Waiver of pre deposit - Availment of invalid duty drawback - Penalty u/s 114(i) - Held that - adjudicating authority has held that duty draw back of ₹ 29,52,303/- needs to be recovered from M/s.Reliable Group & Exports or Shri Vijay Mehta. The adjudicating authority also recorded that in case it is not possible to recovery the said amount from Shri Vijay Mehta and from M/s.Reliable Group & Exports, the same shall be recovered from the CHA or from the appellant, who was an agent of CHA. In our considered view, this portion of the order of the adjudicating authority seems to be prima facie not in consonance of law. For deciding the issue of penalty appellant need to be put to some condition - Partial stay granted.

Summary

Issues: Stay petition for waiver of pre-deposit of an amount under Customs Act, 1962 regarding invalid duty draw back and penalty imposition.

Analysis:
The appellant filed a stay petition seeking waiver of pre-deposit of the amount to be recovered due to availing invalid duty draw back and penalty under Section 114(i) of the Customs Act, 1962. The adjudicating authority found the appellant involved in claiming ineligible duty draw back related to exports through a specific entity. The authority determined a specific amount to be recovered from the entity or an individual. However, the Tribunal observed that the portion of the order related to recovery from the appellant or the agent seemed prima facie not in accordance with the law. Regarding the penalty imposed on the appellant, the Tribunal deemed it necessary to delve deeper into the role played by the appellant in the case for a comprehensive understanding. Recognizing the need for further examination during final disposal, the Tribunal directed the appellant, as an individual, to deposit a specified amount within a stipulated timeframe. Upon compliance, the application for waiver of pre-deposit of the remaining balance was allowed, and recovery was stayed until the appeal's final disposal.