2014 (1) TMI 677 - AT - Central Excise

Waiver of Penalty Duty and Interest already paid Consignment of Diesel seized - Held that - According to the procedure laid down under Notification No. 45/2001-CE (NT), the exporter is required to execute a bond for export to Nepal and is also required to submit the proof of export to the said officers - In case of failure to export, the exporter is required to pay the duty alongwith interest - the goods were not under their control for effecting the export and they have already complied with the conditions of the bond executed by them before the Central Excise Authorities Thus, pre-deposits waived till the disposal Stay granted.

Summary

Issues:
Waiver of penalty for non-export of goods to Nepal under bond.

Analysis:
The appellant sought a waiver of penalty amounting to Rs.1,05,560 as they were unable to export a consignment of 'Diesel' to Nepal under bond due to seizure by police authorities. The appellant clarified that the goods were not under their control during the seizure and that the matter was sub judice before the High Court. Upon release of the consignment, they promptly approached the Commissioner for export permission, but the six-month export period had lapsed. Consequently, they paid the duty and interest, asserting no suppression or concealment on their part, and requested a waiver of the penalty.

The Ld. Additional Commissioner (A.R.) supported the Commissioner (Appeal)'s decision, emphasizing that the goods were not exported within the stipulated period under Notification No. 45/2001-CE (NT) and alleging suppression of material facts, necessitating the penalty payment. However, the Tribunal noted the exporter's obligation under Notification No. 45/2001-CE (NT) to execute a bond for Nepal exports and submit proof of export to authorities. In cases of non-export, duty with interest is payable, which the appellant had already settled. Acknowledging that the goods were beyond their control during the export period and that all bond conditions were met, the Tribunal found merit in the appellant's plea, waiving the pre-deposit of the penalty during the appeal's pendency. Consequently, the stay petition was disposed of, granting relief to the appellant.

This judgment highlights the procedural requirements for exports to Nepal under bond, the consequences of non-export within the stipulated period, and the Tribunal's discretion to waive penalties based on justifications provided by exporters. The case underscores the importance of compliance with bond conditions and the significance of timely actions in export-related matters to avoid penalties and legal repercussions.