2015 (9) TMI 760 - AT - Customs

Duty demand - Undervaluation of goods - Held that - prima facie case in favour of the appellant- assessee for the substantive hearing of the several appeals and consider it appropriate to direct stay of further proceedings pursuant to the Orders-in-Original, on condition that M/s Euro Asia Global remits 25% of the cumulative demand of duty specified in the two Orders-in-Original, to the credit of Revenue within eight weeks. In default of deposit by the appellant within the time stipulated, the stay granted herein shall stand dissolved forthwith on the default without further reference to this Tribunal and the Revenue would be entitled to take appropriate steps in law for recovery of the entirety of the levy of customs duty, penalty or interest as assessed by the Order-in-Original impugned in the substantive appeals - Appeal disposed of.

Summary

Issues:
1. Stay of proceedings on Orders-in-Original dated 26.03.2011 and 30.04.2012.
2. Prima facie case in favor of the appellant-assessee.
3. Direction for remittance of 25% of cumulative demand of duty.
4. Consequences of default in deposit by the appellant.
5. Disposal of several stay applications.

Analysis:
The judgment by Appellate Tribunal CESTAT NEW DELHI, delivered by Justice G. Raghuram, pertains to the subject matter of two Orders-in-Original dated 26.03.2011 and 30.04.2012, involving a total customs duty value of approximately &8377;10.66 crores. The demand of duty is based on the Revenue's assumption of under-invoicing of imported goods, with the true value being determined from only nine bills of entry out of 118. The remaining 109 transactions are assessed based on the assumption derived from the nine bills of entry.

Upon considering the facts and circumstances, the Tribunal finds a prima facie case in favor of the appellant-assessee for the substantive hearing of the appeals. Consequently, the Tribunal deems it appropriate to grant a stay on further proceedings pursuant to the Orders-in-Original. However, this stay is subject to the condition that M/s Euro Asia Global, the appellant, remits 25% of the cumulative demand of duty specified in the two Orders-in-Original to the Revenue within eight weeks.

Furthermore, the judgment outlines the consequences of default by the appellant in depositing the required amount within the specified timeframe. In case of default, the granted stay shall be dissolved immediately without further reference to the Tribunal. The Revenue would then be entitled to take necessary legal steps for the recovery of the entire levy of customs duty, penalty, or interest as assessed in the impugned Orders-in-Original.

Lastly, the judgment disposes of the several stay applications by providing a clear directive for compliance to be reported by a specified date, ensuring transparency and accountability in the process.