2015 (1) TMI 373 - AT - Central Excise

Waiver of pre deposit - Confiscation of goods - Redemption fine - Held that - On perusal of the said Notification No. 55(RE-2008)/2004-2009, dated 5-11-2008 and amended Notification No. 57/2009-14, dated 17-8-2010 issued by Manufacturer of Commercial Goods, we find that the notification talks about the goods which are to be exported as Basmati rice should meet specification of having length as more than 6.61 mm and ratio of length to breadth of the grain shall be more than 3.5. It is seen from the records that in all these cases the said requirement of Notification No. 57/2009-14 stands complied. We also find that in an identical issue, the co-ordinate Bench of the Tribunal in the case of Global Agro Impex v. Commissioner of Customs, India 2013 (9) TMI 851 - CESTAT NEW DELHI has taken a view that if condition of Notification 57/2009-2014 is complied, then exporter cannot be penalised or redemption fine be imposed. Prima facie we are convinced that the appellant have made out a case for complete waiver of the pre-deposit of the amounts involved. - Stay granted.

Summary

Issues:
Identical issue in four stay petitions regarding export of basmati rice and imposition of penalties under Customs Act, 1962.

Analysis:
The judgment by the Appellate Tribunal CESTAT Ahmedabad, delivered by Members M.V. Ravindran and H.K. Thakur, addresses the common issue raised in four stay petitions concerning the export of basmati rice and the penalties imposed under the Customs Act, 1962. The Tribunal examined the records and noted that the Commissioner of Customs, Kandla, based his conclusions on a report from the Basmati Export Development Foundation, Modipuram, Meerut, stating that the appellant did not export basmati rice. The adjudicating authority imposed redemption fines in all cases instead of confiscation, along with penalties under Sections 114(i) and 114AA of the Customs Act, 1962. The Tribunal reviewed Notification No. 55(RE-2008)/2004-2009 and amended Notification No. 57/2009-14, which specify the requirements for exporting Basmati rice, including length and grain ratio. It was found that the appellant met these requirements in all cases. Additionally, the Tribunal referenced a previous decision by a co-ordinate Bench in the case of Global Agro Impex v. Commissioner of Customs, India, which held that compliance with the notification conditions exempts exporters from penalties or redemption fines. The Tribunal was convinced that the appellant had established a case for a complete waiver of the pre-deposit amounts.

The Tribunal, after considering the arguments from both sides and examining the relevant records, concluded that the appellant had fulfilled the conditions specified in the notifications regarding the export of Basmati rice. Citing the precedent set by the co-ordinate Bench in a similar case, the Tribunal found in favor of the appellant, allowing the applications for waiver of pre-deposit amounts and staying the recovery until the appeals are disposed of. The judgment, delivered and pronounced in court, provides a detailed analysis of the issue at hand and the legal basis for granting the waiver and stay of recovery.