2013 (10) TMI 456 - AT - Customs

Waiver of pre-deposit of penalty - Importation of Monosodium Glutamate - Held that - applicant deposited entire amount of duty and the Bank guarantee and the bond are still alive. Therefore, the predeposit of penalty is waived and its recovery stayed till the disposal of the appeal - Decided against assessee.

Summary

Issues: Application for waiver of pre-deposit of penalty, application for early hearing of stay petition, miscellaneous application for release of goods.

Waiver of Pre-deposit of Penalty:
The applicant filed an application seeking waiver of pre-deposit of penalty amounting to Rs. 70 lakhs. The case pertained to the importation of Monosodium Glutamate, where the adjudicating authority had enhanced the value of the goods, demanded duty of Rs. 20.39 lakhs, confiscated the goods, and imposed a penalty of Rs. 70 lakhs. The applicant had paid the duty and submitted a Bank Guarantee of Rs. 40 lakhs and a bond for Rs. One Crore. The advocate argued that despite a High Court order directing the release of goods upon certain conditions, the goods were not released. The Tribunal considered the submissions and noted that the duty was paid, and the Bank Guarantee and bond were still valid. Consequently, the Tribunal waived the pre-deposit of penalty and stayed its recovery until the appeal's disposal.

Stay Application:
The Tribunal allowed the stay application in light of the circumstances presented by both parties. The decision to waive the pre-deposit of penalty influenced this ruling. The Tribunal, after thorough consideration, set the appeal for hearing on a specified date, thereby disposing of the miscellaneous application for the release of goods. As a result of the stay application being granted, the application for early hearing of the stay petition was deemed infructuous and dismissed. The order was pronounced in an open court setting.

This judgment from the Appellate Tribunal CESTAT CHENNAI, delivered by Shri. P.K. Das, addressed various issues concerning the waiver of pre-deposit of penalty, the release of goods, and the stay application. The Tribunal's decision to waive the pre-deposit of penalty was based on the applicant's compliance with duty payment and the submission of valid Bank Guarantee and bond. The ruling on the stay application was influenced by this waiver, leading to the setting of a hearing date for the appeal and the dismissal of the application for early hearing of the stay petition.