2013 (8) TMI 852 - AT - Customs

Mis declaration - Whether there was mis declaration on the part of the assessee department was of the view that there was mis declaration on the appellant and they impose the custom duty Held that - Prima facie it was case of mis-declaration in the appeal - upon reading of adjudication order the act of the appellant caused prejudice to the Revenue - But court did not express any opinion on such mis-declaration. Stay application - Waiver of Pre deposit Held that - pre-deposit has become condition in respect of stay application 25% of the duty was ordered to be submitted on such submission rest of the duty to be waived decided in favour of assessee with conditions.

Summary

Issues:
1. Allegation of mis-declaration and evasion of customs duty.
2. Disagreement on valuation suggested by the appellant.
3. Pre-deposit requirement for stay application.

Analysis:
1. The judgment revolves around the allegation of mis-declaration and evasion of customs duty concerning the import of 22 machines. The adjudication order raised concerns about the correctness of the invoice value, alleging gross undervaluation of the imported machines to evade customs duty amounting to Rs. 22,81,831. The importer was accused of willful misstatement, suppression of facts, and undervaluation, rendering the goods liable to confiscation and demand confirmation under relevant sections of the Customs Act. The directors of the importing company were also held responsible for the alleged undervaluation and evasion, facing penal action under the Customs Act.

2. The appellant disputed the valuation suggested by the adjudicating authority, claiming that certain sections of the order were not attributable to their case. However, the authority expressed dissatisfaction with the appellant's valuation methodology, indicating that it caused prejudice to the revenue. Despite the prima facie case of mis-declaration, the tribunal refrained from expressing an opinion at that stage. The tribunal directed the appellant to make a pre-deposit of Rs. 5 lakhs within a specified timeline, with failure to comply resulting in dismissal of the appeals. The pre-deposit condition was imposed for the stay application, and the realization of the balance demand was stayed during the appeal's pendency.

3. The judgment highlights the importance of compliance with pre-deposit requirements for stay applications, emphasizing the need for timely deposits to prevent dismissal of appeals. The tribunal's decision to mandate a pre-deposit aimed to ensure that both parties could present their defenses with evidence during regular hearings to ascertain the veracity of the allegations and valuation discrepancies. The judgment underscores the procedural significance of pre-deposit conditions in maintaining the balance between the interests of the appellant and revenue authorities during legal proceedings.