2014 (10) TMI 44 - HC - Customs

Waiver of pre deposit - Seizure of goods - Held that - Sale proceeds of the seized goods have been completely confiscated and his difficult financial position, the interest of justice would be served if the appellant is directed to make a total pre-deposit of ₹ 30.00 lacs as against the pre-deposit ordered by the Tribunal at ₹ 40.00 lacs. The appeals are accordingly partly allowed and the impugned final orders of the Tribunal are set aside and on the condition precedent that appellant deposits in an aggregate an amount of ₹ 30.00 lacs in both the appeals. amount already deposited of ₹ 12.00 lacs towards the aforesaid pre-deposit amount being ₹ 7.00 lacs and ₹ 5.00 lacs respectively shall be given credit while computing the amount of ₹ 30 lacs. It is accordingly directed that the appellant shall make two separate deposits in the aggregate of ₹ 20.00 lacs and ₹ 10.00 lacs in the two appeals after taking into account the amounts already deposited.

Summary

Issues:
Challenge to final orders passed by Customs, Excise and Service Tax Appellate Tribunal for failing to pre-deposit in appeals.

Analysis:
The appellant contested the final orders of the Tribunal, which required a pre-deposit of Rs. 40.00 lacs in total for two appeals, with 25% and 50% of the penalty amounts directed to be pre-deposited. The appellant argued that since the sale proceeds of the seized goods were entirely confiscated, there was no justification for such a high pre-deposit. The appellant claimed financial inability to raise the entire amount, leading to the dismissal of the appeal.

The respondent opposed the appeal and supported the Tribunal's order. After hearing both parties, considering the complete confiscation of sale proceeds and the appellant's financial position, the Court decided that justice would be served by reducing the pre-deposit to Rs. 30.00 lacs in total for both appeals. The Court partly allowed the appeal, setting aside the Tribunal's orders and directing the appellant to make the reduced pre-deposit.

The Court clarified that the appellant's previous deposit of Rs. 12.00 lacs would be credited towards the new pre-deposit requirement. The appellant was instructed to make two separate deposits of Rs. 20.00 lacs and Rs. 10.00 lacs in the two appeals after adjusting the amounts already deposited.

The Tribunal's dismissal orders were set aside on the condition that the appellant deposits Rs. 30 lacs within eight weeks. Failure to comply within six weeks would result in the dismissal orders remaining in place. Once the deposit was made and evidence provided to the Tribunal, the appeals would be restored and finally decided on merits.

Both appeals were disposed of based on the above terms, providing a detailed resolution to the issues raised regarding the pre-deposit requirements and the appellant's financial constraints.