2013 (11) TMI 634 - AT - Customs

Confiscation of goods - Valuation of consignment of foils imported - provisional release of goods - Held that - four consignments seized by the respondent authority, we are of the view that in such situation, the petitioners maybe permitted to have release of three of the consignments and remaining one consignment will be kept as security. In addition to such security, the petitioners will give corporate bond of the entire valuation as demanded by the respondent and will give bank guarantee of 25% of the differential duty. On furnishing of such bond and bank guarantee as indicated above, the respondent authority will release three of the consignments detaining the remaining one. This order will abide by all the ultimate result of adjudication by the respondent authority - Supreme Court enhanced the security to 30%, but having regard to the fact that we have not permitted the release one of the four consignments of the petitioners, we, in the facts of the present case, restrict the amount of bank guarantee to 25%. The petitioners, however, must answer to the show cause notice within three weeks from today. In default of the same, the respondent authority will be free to adjudicate the matter exparte - Following decision of Navshakti Industries Pvt. Ltd. Vs. Commissioner of Custom, ICD, TKD, New Delhi 2010 (5) TMI 592 - DELHI HIGH COURT - Decided partly in favour of assessee. Waiver of pre deposit - Held that - Since the appellant in this case has followed the direction, ld. Sr. Counsel s submission that one of the consignment is lying with the department, which is of value of approximately Rs.40 lakhs, we consider the compliance made by the appellant on the direction Hon ble High Court, as enough to hear and dispose the appeals - applications for waiver of pre-deposit of balance amount of duty, interest and penalties imposed are allowed and recovery thereof stayed till the disposal of appeals - Stay granted.

Summary

Issues involved:
1. Valuation of consignment of foils imported by the appellant.
2. Compliance with the order of the Hon'ble High Court regarding the consignments.
3. Applications for waiver of pre-deposit of balance amount of duty, interest, and penalties imposed.

Analysis:
1. The issue involved in this case pertains to the valuation of consignment of foils imported by the appellant. The appellant had initially disputed the fixation of valuation of the consignments, which was pending adjudication. The Hon'ble High Court directed the appellant to follow certain conditions, including releasing three consignments and keeping one as security. The appellant was required to provide a corporate bond of the entire valuation as demanded by the respondent and a bank guarantee of 25% of the differential duty. The High Court's order was based on a decision of the Delhi High Court, affirmed by the Supreme Court, which set the bank guarantee at 30%, but in this case, it was restricted to 25%. The appellant was given three weeks to answer the show cause notice, failing which the respondent authority could adjudicate the matter ex parte.

2. The compliance with the order of the Hon'ble High Court regarding the consignments was a crucial aspect of the case. The appellant had followed the directions given by the High Court, including releasing three consignments and providing the necessary bonds and guarantees. The appellant had one consignment worth approximately Rs.40 lakhs still with the department, which was considered in the context of compliance with the High Court's order. The compliance made by the appellant was deemed sufficient for the appeals to be heard and disposed of.

3. The applications for waiver of pre-deposit of the balance amount of duty, interest, and penalties imposed were considered in light of the compliance with the High Court's order. The tribunal allowed the applications for waiver, thereby staying the recovery of the balance amount of duty, interest, and penalties imposed until the disposal of the appeals. This decision was a result of the compliance made by the appellant with the directions of the Hon'ble High Court, ensuring that the appeals could proceed without the immediate recovery of the mentioned amounts.