2013 (10) TMI 853 - AT - Customs

Waiver of pre deposit - Held that - Adjudicating authority held that the transaction value of similar goods is available from the contemporaneous import price cleared at Jawaharlal Nehru Custom House, Nhava Sheva in the case of M/s. Lakshmi Trading Co., Delhi. The submission of the learned advocate that violation of natural justice before the adjudicating authority is not sustainable as they have got an opportunity before the Commissioner (Appeals) - we direct the applicant to deposit a sum of Rs.10,00,000/- (Rupees Ten lakhs only) within 8 weeks and report compliance on 20.6.2013. Upon such compliance, predeposit of balance dues arising from the impugned order is waived and its recovery is stayed during pendency of the appeal - Decided against assessee.

Summary

Issues:
1. Application for waiver of pre-deposit of Rs.2.14 crores.
2. Enhancement of declared value based on documents.
3. Violation of natural justice and non-supply of relied upon documents.

Analysis:
1. The applicant filed an application for waiver of pre-deposit of Rs.2.14 crores concerning the import of white poppy seeds from Turkey. The applicant had already deposited Rs.40 lakhs in compliance with the Honorable Madras High Court's order to pay 20% of the differential duty. The adjudicating authority enhanced the declared value based on documents from M/s. Lakshmi Trading Co., Delhi, among others. The applicant claimed they could not attend the hearing before the original authority due to proceedings before the High Court. The Commissioner (Appeals) did not provide any findings despite the applicant's request for document copies.

2. The learned advocate for the applicant argued that the relied upon documents were not supplied, while the AR contended that other documents were provided and were public records. The adjudicating authority justified the value enhancement by referring to the transaction value of similar goods cleared at Jawaharlal Nehru Custom House. The Tribunal acknowledged the lack of document supply to the applicant but noted the opportunity provided before the Commissioner (Appeals). After considering both sides, the Tribunal directed the applicant to deposit Rs.10,00,000 within 8 weeks. Upon compliance, the pre-deposit of the balance dues was waived, and recovery stayed during the appeal's pendency.

3. The issue of violation of natural justice arose regarding the non-supply of relied upon documents to the applicant. The Tribunal recognized the factual dispute regarding document supply but found some merit in the applicant's contention. Despite the AR's argument that other documents were provided, the Tribunal emphasized the lack of specific document supply. Ultimately, the Tribunal balanced the interests by directing a partial deposit and waiving the remaining balance pending the appeal's resolution.