2015 (12) TMI 1034 - HC - Customs

Waiver of pre deposit - Confiscation of goods - Imposition of redemption fine and penalty - Held that - At the time when the appellant filed an appeal against the first order in original dated 29.3.2011, the Tribunal entertained the appeal without any pre-deposit condition and disposed of the appeal at that stage itself. As a matter of fact, the appellant was better off with the first order in original dated 29.3.2011. At that time, he had the option of redeeming the goods upon payment of ₹ 20 lakhs. - appellant is worse off and the Department is better off with an order directing permanent confiscation of the goods worth ₹ 82,83,633/-. Therefore, the question of hardship that could be caused to the appellant has not been examined in the proper perspective by the Tribunal in the impugned order - Pre deposit amount reduced - Decided partly in favour of assessee.

Summary

Issues: Challenge to condition imposed by Tribunal for deposit amount in appeal against Commissioner's order.

Analysis:
1. Detention of Export Consignment: The appellant challenged a condition imposed by the second respondent Tribunal, which required a deposit of Rs. 10 lakhs to entertain an appeal against the Commissioner's order regarding the detention of an export consignment of industrial salt by the Intelligence at the Container Freight Station in Chennai.

2. Commissioner's Order: The Commissioner of Customs had passed an order directing confiscation of the goods valued at Rs. 82,83,633 under relevant sections of the Customs Act and Foreign Trade Act. The appellant was given an option to redeem the goods upon payment of Rs. 20 lakhs, along with other fines and penalties imposed.

3. Appeals and Tribunal's Orders: The appellant had filed appeals before the Tribunal against the original order, which were set aside due to inadequate hearing. A fresh order was passed by the Commissioner for permanent confiscation of goods and imposition of penalties. Subsequently, the appellant filed a fresh appeal with a request for waiver of pre-deposit condition, which was initially set at Rs. 10 lakhs by the Tribunal.

4. Judicial Review: The High Court observed that the appellant was in a worse position with the new order compared to the original one, where the option to redeem goods was available at a lower cost. The Court noted that the Tribunal did not consider the hardship to the appellant properly and modified the deposit amount to Rs. 5,00,000 to ensure fairness and balance in the proceedings.

5. Final Decision: The civil miscellaneous appeal was allowed, modifying the Tribunal's order to require a deposit of Rs. 5,00,000 within eight weeks for the appeal to be entertained and decided on merits. The Court emphasized maintaining fairness and equal scales between the appellant and the Department in the proceedings.