2013 (9) TMI 287 - AT - Customs

Undervaluation of goods - Waiver of pre deposit department was of the view that the assessee undervalued the goods and did not discharge the correct custom duty Held that - Assessee already submitted enough amount as security stay granted.

Summary

Issues: Stay petition for waiver of pre-deposit of duty demand, penalty, and interest.

Analysis:
1. Duty Demand, Penalty, and Interest: The appellants, M/s. Galaxy Global Pvt. Ltd. and Shri Anoop Rameshkumar Jalan, filed a stay petition seeking a waiver of pre-deposit of confirmed amounts of Rs.15,44,941/- duty demand and penalty each for M/s. Galaxy Global Pvt. Ltd., and Rs.1,00,000/- penalty for Shri Anoop Rameshkumar Jalan, along with applicable interest. The adjudicating authority and the first appellate authority upheld the amounts due to undervaluation of imported goods and incorrect payment of customs duty (CVD). During the proceedings, the appellants deposited Rs.4 lakhs towards the duty shortfall, executed a bond of Rs.60.11 lakhs, and provided a bank guarantee of Rs.5 lakhs for provisional release of the goods.

2. Security Consideration: The counsel representing the appellants argued that the deposited amount and existing bank guarantee adequately secured the interest of the Revenue against the duty demand. After hearing the submissions, the Tribunal found the security provided to be sufficient to proceed with the appeal. Consequently, the Tribunal allowed the waiver of pre-deposit for the remaining balance amounts, staying the recovery until the appeal's disposal. The appellants were instructed to maintain the bank guarantee of Rs.5 lakhs throughout the appeal process to ensure the security remained intact.

3. Decision: The Tribunal, comprising Mr. M.V. Ravindran, granted the waiver of pre-deposit for the balance amounts contested by the appellants, considering the security already in place. The recovery of the remaining amounts was stayed until the appeal's finalization, with a specific directive for the appellants to maintain the bank guarantee of Rs.5 lakhs during the pendency of the appeals. This decision aimed to balance the interests of both the appellants and the Revenue while ensuring the continuation of the legal process without undue financial burden on the appellants.