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2014 (4) TMI 515 - HC - CustomsWaiver of pre deposit - Penalty - Held that - deposit of ₹ 3 crore and furnishing of security for ₹ 9 crore in view of the interim order be treated as sufficient and the appeal be heard on merit - appellant is directed to file an affidavit before the Tribunal for the deposit of amount of ₹ 3 crore and for furnishing security of ₹ 9 crore within a period of one week - Decided partly in favour of assessee.
Issues:
Challenge to order under Section 129-A (4) of the Customs Act regarding penalty deposit waiver and direction to deposit a sum of Rs.12 crore. Consideration of financial hardship, justification of Tribunal's order, and merit of the appeal. Analysis: The appellant challenged an order under Section 129-A (4) of the Customs Act, where the Tribunal waived the penalty deposit and directed a deposit of Rs.12 crore within 8 weeks. The High Court stayed the recovery, allowing a deposit of Rs.3 crore in cash and furnishing security for the remaining Rs.9 crore. A supplementary affidavit was filed, stating compliance with the deposit and security requirements. The appellant argued that the demand for the period of 2004-05 to 2008-09 was unjustified, specifically objecting to allegations regarding three consignments in 2008. The appellant requested the waiver of the balance amount due to financial hardship and urged the Tribunal to decide the appeal on merit. The respondent's counsel contended that the Tribunal's order was justified based on the facts and circumstances. Upon reviewing the submissions and the record, the Court found the matter required adjudication to determine the correctness of the Department's allegations regarding the three consignments and the duty demand for past periods based on those transactions. Considering the circumstances, the Court deemed the deposit of Rs.3 crore and security of Rs.9 crore sufficient under the interim order, allowing the appeal to be heard on merit. Consequently, the appeal was partially allowed, directing the appellant to file an affidavit for the deposit and security within a week for the Tribunal to proceed with the appeal's merit promptly.
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