2011 (4) TMI 281 - HC - Customs

Waiver of pre-deposit - Misdeclared the value of the imported goods - Held that - the imported goods have been insured for a value ten times higher than the value declared before the customs authorities - The Tribunal has recorded a finding that the director of the company in his confessional statement made under Section 108 of the Customs Act, 1962 admitted that there is under valuation - It is not in dispute that the statement made under Section 108 of the Customs Act has not been retracted - Decided against the assessee.

Summary

Issues:
1. Challenge against the order of CESTAT directing pre-deposit.
2. Allegations of misdeclaration of imported goods and under valuation.

Analysis:
1. The appellant challenged the order of CESTAT directing a pre-deposit of Rs. 24 lacs out of a total demand of Rs. 79 lacs based on the order-in-original dated 20th March, 2009. The appellant contended that the order-in-original merely reproduced the statements from the show cause notice without an independent application of mind. The appellant argued that instead of directing the pre-deposit, the Tribunal should have set aside the order-in-original for a fresh decision by the adjudicating authority. However, the High Court upheld the CESTAT's decision, stating that prima facie evidence showed misdeclaration of imported goods, as the goods were insured for a value ten times higher than declared. The director's confessional statement under Section 108 of the Customs Act admitting under valuation was also considered, as it was not retracted. Consequently, the High Court dismissed the appeal.

2. The High Court noted that the CESTAT's order was based on substantial evidence indicating misdeclaration and under valuation of imported goods. The director's unretracted confessional statement under Section 108 of the Customs Act played a crucial role in establishing the under valuation. The Court found no reason to interfere with the Tribunal's decision, as the evidence presented was compelling. The appellant's request for time to make the pre-deposit of Rs. 24 lacs was granted, with an undertaking accepted by the Court for the deposit to be made within two weeks. The appeal was disposed of accordingly, with no order as to costs.

This detailed analysis of the judgment from the Bombay High Court showcases the legal intricacies involved in challenging a CESTAT order, highlighting the importance of evidence and confessional statements in establishing allegations of misdeclaration and under valuation of imported goods.