2013 (8) TMI 69 - AT - Customs

Confiscation of goods waiver of Penalties imposed Held that - Assesse had not made out prima facie case for complete waiver of penalties - assesses could not produce any documentary evidence to indicate that the rough diamonds seized correspond to the description and value given in the bills of entry under which the rough diamonds were imported maintenance of stock register/account, the assesse could not explain as to how the stock of imported rough diamonds was maintained and how the same were disposed off pre deposit of an amount Rs. 50,000 was ordered on such submission rest of the duty was waived decided partly in favor of assessee.

Summary

Issues: Stay petitions against penalties imposed under Order-in-Original for seized rough diamonds.

In this judgment by the Appellate Tribunal CESTAT AHMEDABAD, the appellants challenged penalties imposed under Order-in-Original for seized rough diamonds. The appellants argued that the diamonds were legally imported and there was no justification for penalties or confiscation. The appellants failed to provide documentary evidence linking the seized diamonds to the legally imported ones. The tribunal noted the absence of a stock register or account to track the imported rough diamonds. Consequently, the appellants were directed to make pre-deposits within a specified period. Appellant No.2 was directed to deposit Rs. 5 lakhs, while Appellant No.1 was directed to deposit Rs. 50,000. Compliance was to be reported before the Deputy Registrar, and if met, the applications for waiver of the remaining amounts were allowed, with recovery stayed pending appeal disposal. The judgment highlights the importance of maintaining proper records and providing evidence to support claims in customs cases involving seized goods.