2010 (8) TMI 318 - HC - Customs

Waiver of pre-deposit undue hardship exemption denied by dept Tribunal granted waiver of pre-deposit however Single Judge of the HC allowed Dept petition on the ground that only in circumstances of undue hardship, such a power could be exercised by the Tribunal Held that - there is no liability to pay tax, merely because the authorities took a contrary view in an appeal - Tribunal granting complete waiver of pre-deposit was legal and justified - appeal is allowed

Summary

Issues:
Challenge to order waiving pre-deposit in appeal filed against Commissioner of Appeals' decision.

Analysis:
The appellant, a public limited company, imported goods exempted from customs duty under a specific notification. However, after over two years, authorities issued a show cause notice claiming the goods were not exempt, leading to duty imposition. The appellant appealed the decision, seeking full waiver of pre-deposit. The Tribunal granted the waiver, which was challenged by the Revenue in a writ petition. The Single Judge set aside the Tribunal's order, citing lack of pleading undue hardship for full waiver. The appellant contended that the goods were exempted, challenging the jurisdiction of re-opening the proceedings after exemption grant. Referring to a Supreme Court judgment, the appellant argued that the waiver was justified, as insisting on pre-deposit would cause undue hardship and misery. The appellant's appeal against the Single Judge's order was allowed, setting aside the Single Judge's decision and restoring the Tribunal's order for the appeal to be heard on merits promptly.