1986 (5) TMI 178 - AT - Customs

Summary

Issues:
1. Appeal against order of the Collector of Customs for levy of a sum.
2. Application for waiving deposit and staying recovery.
3. Non-compliance with Tribunal's order and potential dismissal of appeal.
4. Interpretation of the nature of the amount demanded by the Collector.
5. Application of Section 129E of the Customs Act in the case.

Analysis:
1. The appeal was filed by M/s. Mekaster Private Limited against the Collector of Customs' order to levy a sum of Rs. 5,30,772/- for not producing a valid import license for the imported goods. The Collector appropriated Rs. 1,32,693/- from a deposit, leaving a balance of Rs. 3,98,079/-. An application was made to waive the deposit and stay its recovery, which was partially granted by the Tribunal, requiring a cash deposit of Rs. 2,50,000/- within a specified time frame.

2. Despite extensions granted, the Appellants failed to comply with the Tribunal's order for depositing the required amount. Consequently, a notice was issued to show cause why the appeal should not be dismissed for non-compliance with Section 129E of the Customs Act. The Appellants sought further extensions, which were denied, leading to the issuance of the show cause notice.

3. During the proceedings, the Appellants' Advocate requested an extension of time, while the Respondent urged for dismissal due to non-compliance. The Respondent contended that the amount demanded was in the nature of a penalty, justifying dismissal under Section 129E. However, the Appellants argued that the amount was not a penalty but a sum demanded under the Collector's order for failing to produce the required license.

4. The Tribunal analyzed the facts of the case and determined that the amount demanded by the Collector was not a penalty under Section 112 of the Customs Act but was related to the bond executed by the Appellants for the import of goods. As the Collector did not invoke Section 112 for levying a penalty, the Tribunal concluded that the amount was not a penalty but a sum enforceable under the bond provisions of the Customs Act.

5. Based on the interpretation of the nature of the amount demanded and the provisions of the Customs Act, the Tribunal held that non-compliance with the Tribunal's order did not warrant dismissal under Section 129E. The show cause notice was discharged, and the appeal of M/s. Mekaster Private Limited was scheduled for hearing and disposal. The Tribunal also revoked the previous order on the stay application, allowing the department to recover the balance amount from the Appellants.