2013 (12) TMI 1402 - AT - Customs

Waiver of pre-deposit - Duty demand - Import of certain goods under the advance licence without payment of duty - Denial of the benefit of advance licence obtained - Held that - as the advance licence under which the goods were imported by the applicant is obtained by submitting forged documents. Therefore it is not a case for waiver of pre-deposit of duty and interest. The applicant is directed to deposit the amount of duty along with interest within a period of eight weeks. On deposit of the above mentioned amount, the pre-deposit of the penalty is waived and recovery of the same is stayed during the pendency of the appeal - Conditional stay granted.

Summary

Issues:
1. Delay in filing the appeal due to non-receipt of adjudication order.
2. Application for waiver of pre-deposit of duty, interest, and penalty based on the procurement of advance license under false pretenses.

Issue 1: Delay in filing the appeal due to non-receipt of adjudication order

The applicant filed an application to condone a delay of 1119 days in filing the appeal, claiming non-receipt of the notice for personal hearing and the adjudication order. The Revenue was directed to provide evidence of service of the adjudication order, which they did by producing the original envelope marked "Refused" upon return. However, upon examination, it was revealed that the notice was sent to an incorrect address, leading to the delay in the appellant's knowledge of the order. The Tribunal found merit in the appellant's contention, and the delay in filing the appeal was condoned.

Issue 2: Application for waiver of pre-deposit of duty, interest, and penalty based on the procurement of advance license under false pretenses

The applicant sought a waiver of pre-deposit of Rs.1,79,498/-, interest, and penalty concerning the import of goods under an advance license obtained through false means. The Revenue confirmed the demand due to the misdeclaration of exported goods in obtaining the advance license. The applicant argued that they procured the license in good faith, unaware of any misdeclaration. However, relying on a previous Tribunal decision, the Revenue contended that the duty deposit was necessary as the license was obtained through forged documents. The Tribunal upheld the Revenue's decision, directing the applicant to deposit the duty and interest within eight weeks. Upon compliance, the pre-deposit of the penalty was waived, and recovery stayed during the appeal's pendency.

This judgment addressed the issues of delay in filing the appeal and the application for the waiver of pre-deposit of duty, interest, and penalty. The Tribunal considered the circumstances surrounding the non-receipt of the adjudication order and the procurement of the advance license under false pretenses, ultimately ruling in favor of the appellant regarding the delay in filing the appeal. However, the Tribunal upheld the Revenue's decision regarding the duty deposit due to the fraudulent procurement of the advance license. Compliance was mandated within a specified timeframe, with penalties waived upon deposit.