2014 (11) TMI 613 - AT - Customs

Waiver of pre-deposit - Penalties imposed under Section 114(i) and Section 114 AA - allegation that all these appellants were engaged in aiding/abetting diversion of Muriate of Potash which was imported at concessional duty for use as fertilizer or manufacture of composite fertilizer - Held that - Adjudicating authority in impugned order has recorded detailed findings as to the role played by each of the appellant. It is noticed that the role attributed to Shri Vijay Singh Gohil is in respect of procuring and providing the place for conversion of MOP into different packing and labelling thereof, providing logistic support for transportation of goods to the port. The adjudicating authority has attributed the role of signing the export document to the appellant Shri Chhaganlal Arun though being an employee of CHA has done so without proper authorization. As regards the role played by Shri Anupam Krishi, it is recorded that this appellant had knowingly sold MOP to individuals on invoices which were raised on individual farmers and authorised dealers. It is also recorded that M/s Ashoka Salt Refinery Industries had played a role of supplying and invoices for salt without any sale transactions which was utilised by the people for export of MOP under the guise of Feldspar Powder. role attributed to every appellant before us prima facie seems to be an activity which is performed for contravention of the provisions of Customs Act 1962. - Partial stay granted. As regards the application for the waiver of pre-deposit of the amount penalty imposed on M/s Ashoka Salt Refinery Industries, we find from the records that the said appellant had only issued one invoice of sale of salt to Ashok Agarwal. This solitary act of the appellant could not mean that he has any role to play in the export of MOP as Feldspar Powder. We are of the view that this appellant has made out a case for the waiver of the pre-deposit of the amounts as penalties imposed by the adjudicating authority. This application for waiver of pre-deposit of the amount of penalty involved is allowed and recovery thereof stayed till the disposal of this appeal. - Stay granted.

Summary

Issues:
1. Stay petitions for waiver of pre-deposit of penalties under Section 114(i) and Section 114 AA of the Customs Act 1962.

Analysis:
1. The penalties were imposed on appellants for aiding/abetting diversion of Muriate of Potash (MOP) imported at concessional duty for fertilizer use. Each appellant's role was examined individually.
2. Shri Vijay Singh Gohil, a transporter, claimed innocence, offering Rs One lac for pre-deposit. Shri Chhaganlal Arun, an employee of CHA, argued signing documents without authorization did not warrant penalty. Shri Anupam Krishi, a registered fertilizer dealer, maintained innocence as he invoiced MOP to farmers and dealers lawfully. M/s Classic Freight Forwarders did not appear.
3. M/s Ashoka Salt Refinery Industries denied involvement in MOP export, stating they issued one invoice without knowledge of its use. Revenue alleged collusion among appellants for MOP export.

4. The Tribunal reviewed previous stay orders but found deeper analysis necessary due to individual roles. Prima facie, appellants' activities seemed to contravene Customs Act provisions.
5. The Tribunal decided to examine individual roles in detail during final appeal disposal, as it would require substantial time.
6. M/s Ashoka Salt Refinery Industries' waiver application was granted due to minimal involvement. Other appellants were directed to deposit specific amounts by a set date.
7. Compliance reports were to be submitted by the specified date for further orders. Waiver of the remaining penalty amounts was subject to compliance and stayed until appeal disposal.