2015 (12) TMI 928 - HC - Customs

Restoration of appeal - Waiver of pre deposit - Import of machinery at a concessional rate of duty - appellant failed to achieve that target. Extension of time was sought by the appellant and the target period was extended up to 19.1.2007 - Levy of penalty - Held that - Assistant Registrar of the Tribunal was directed to report to the bench on 7.2.2012. However, on 7.2.2012 itself, the appeal was dismissed on the failure of the appellant to make the deposit. It is stated in the appeal before this Court that the bank guarantee furnished by the appellant at the time of clearance of the consignment was in existence at the relevant time. This Court extended the time for pre-deposit by another two months as per the judgment dated 10.2.2012. A situation has arisen now that the judgment passed by this Court cannot be implemented, since, by that time, the tribunal has dismissed the appeal filed by the appellant - it is only just and proper to grant an opportunity to the appellant to pursue the appeal on merits and allow them to make pre- deposit - Decided in favour of assessee.

Summary

Issues:
1. Extension of time for achieving export target
2. Dismissal of appeal due to failure in pre-deposit
3. Implementation of High Court judgment

Extension of time for achieving export target:
The appellant, a Government undertaking, was granted a license to import machinery at a concessional duty rate on the condition of exporting specific goods within a set period. Despite failing to meet the export target, the appellant sought an extension, which was belatedly granted. Subsequently, a penalty was imposed for short levy of duty. The appellant appealed against the penalty, with the Commissioner of Customs dismissing the appeal. The appellant then approached the Customs, Excise and Service Tax Appellate Tribunal, which directed a pre-deposit. However, due to a delay in depositing the amount, the Tribunal dismissed the appeal. The High Court, considering the appellant's efforts and the circumstances, set aside the Tribunal's order, allowing the appellant to pursue the appeal by making the required deposit within a specified deadline.

Dismissal of appeal due to failure in pre-deposit:
The Tribunal had mandated the appellant to make a pre-deposit as a condition for maintaining the appeal, which the appellant failed to do within the stipulated time frame. Despite the appellant's genuine efforts and the existence of a bank guarantee, the Tribunal dismissed the appeal. The High Court, acknowledging the procedural irregularity and in the interest of justice, extended the deadline for the appellant to make the pre-deposit, emphasizing the need for a fair opportunity to pursue the appeal on its merits.

Implementation of High Court judgment:
Upon review, the High Court found that its previous judgment extending the time for pre-deposit could not be implemented due to the Tribunal's dismissal of the appeal. To rectify this, the High Court set aside the Tribunal's order and directed the Tribunal to reconsider the appeal afresh, provided the appellant makes the necessary pre-deposit within a specified deadline. The High Court highlighted the significance of ensuring justice and fair opportunities for the appellant in the legal process, emphasizing the need for proper implementation of court decisions.