2013 (11) TMI 388 - AT - Customs

Penalty under Section 112(b) and Section 114(i) - Export of Muriate of Potash under the guise of Industrial salt - Held that - Role played by the appellant needs to be gone in detail, which can be done only at the time of final disposal of appeal. At this juncture, we find that the appellant has been indicted for preparing the documents for export and various related documents, mis-declaring Muriate of Potash as industrial salt. Waiver of pre deposit - Held that - Appellant has not made out a case for complete waiver of the pre-deposit of the penalty imposed under Section 114(i) of Customs Act, 1962 - Stay granted partly.

Summary

Issues:
1. Condonation of delay in filing appeal.
2. Waiver of pre-deposit of penalties under Sections 112(b) and 114(i) of Customs Act, 1962.

Analysis:
1. Condonation of delay in filing appeal:
The appellant filed an application for condonation of delay, even though it was not required. The appeal along with Stay Petition was filed before the Tribunal on 09.07.2012, acknowledging that the Order-in-Original was received on 28.04.2012. The Tribunal found that the appeal was filed in time, rendering the application for condonation of delay as infructuous.

2. Waiver of pre-deposit of penalties under Sections 112(b) and 114(i) of Customs Act, 1962:
The penalties were imposed on the appellant for playing an active role in the export of Muriate of Potash disguised as industrial salt. The Tribunal noted that a detailed examination of the appellant's role is necessary at the final disposal of the appeal. Regarding the penalty under Section 112(b) of Customs Act, 1962, it was observed that the penalty does not apply as the issue pertains to the export of Muriate of Potash, leading to a case for waiver of pre-deposit of this penalty. However, for the penalty under Section 114(i) of the Customs Act, the Tribunal decided that a thorough consideration of the appellant's role is required at the final disposal of the appeal. Consequently, the Tribunal directed the appellant to deposit Rs.2 lakhs within eight weeks and report compliance, with further proceedings scheduled accordingly. Upon compliance, the application for waiver of the remaining balance amount was allowed, and recovery stayed pending the appeal's disposal.