2014 (3) TMI 639 - HC - Customs

Waiver of pre deposit - Tribunal directed predeposit 50% of the duty amount confirmed - Tribunal considered the appellant s case on merits at the prima facie stage - Held that - No substantial question of law arises at this stage. The Tribunal was not supposed to examine the case of the appellant on merits, when the Chairman and the Managing Director of the appellant company had admitted during the investigation that goods were of China origin and were loaded at Port of Shanghai in China - appellant is not in a position to deposit 25% or even 10% of the duty amount - Therefore, decided against assessee.

Summary

Issues:
1. Predeposit of anti-dumping duties directed by the Tribunal.
2. Appellant's claim of goods purchased on High Sea and time-barred demand.
3. Financial hardship of the appellant.

Analysis:
1. The appellant imported citric acid declaring it as Korean origin, but investigation revealed it was of Chinese origin, attracting anti-dumping duty. The Commissioner confirmed duty of Rs.1,24,40,415. The Tribunal directed predeposit of 50% of the duty amount, considering appellant's financial hardship and prima facie merits of the case.

2. Appellant contended goods were purchased on High Sea, thus not liable for anti-dumping duty, and raised the issue of time-barred demand. However, the Tribunal dismissed these contentions, emphasizing the admission by the appellant's Chairman and Managing Director regarding the Chinese origin of the goods.

3. Despite appellant's plea of financial hardship, the court inquired about willingness to deposit 25% of the duty amount, to which the appellant expressed inability even for 10%. Considering the circumstances, the court declined to entertain the appeal and summarily dismissed it, affirming the Tribunal's decision on predeposit.

This judgment highlights the importance of truthful declaration of goods' origin, the impact of admission by company officials, and the significance of financial capacity in predeposit requirements.