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2013 (10) TMI 804 - AT - Customs


Issues:
1. Interpretation of whether goods qualify as finished leather for export.
2. Validity of penalty increase without prior notice under Section 128A(3) of the Customs Act.
3. Requirement of pre-deposit for admission of appeal.

Analysis:

Issue 1:
The case involved the export of leather products where Customs officers doubted the nature of one item in the Shipping Bill. The Central Leather Research Institute (CLRI) opined that the goods lacked a protective coating, thus not meeting the criteria of finished leather. This led to confiscation, redemption fine, penalty, and export duty demand. The Tribunal considered the applicant's argument that the CLRI report was incorrect and that only one final process was missed in the manufacturing of finished leather. The Tribunal directed a pre-deposit for admission of appeal to further examine whether the absence of one process could disqualify the goods as finished leather.

Issue 2:
The applicant contested the penalty increase by the Commissioner (Appeals) without prior notice, alleging a violation of Section 128A(3) of the Customs Act. The Tribunal acknowledged the lack of notice to the applicant regarding the penalty increment. The applicant expressed intent to present additional evidence during the appeal hearing to challenge the CLRI report and prove the inaccuracy of the findings.

Issue 3:
The Revenue representative cited a previous Tribunal decision upholding confiscation and export duty demand in a similar case, requesting a pre-deposit for the current appeal. The Tribunal, after considering arguments from both sides, ordered a pre-deposit of Rs.1,20,000 for appeal admission. Upon compliance with the pre-deposit, the remaining dues would be waived, and recovery stayed until the appeal's disposal, with a reporting deadline set for confirmation.

In conclusion, the judgment addressed the interpretation of finished leather for export, the procedural requirement of notice for penalty increase, and the necessity of pre-deposit for appeal admission, ensuring a fair consideration of the issues raised by the parties involved.

 

 

 

 

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