2001 (3) TMI 351 - AT - Customs

Summary

Issues:
1. Waiver of pre-deposit of duty of Customs and interest thereon
2. Challenge to duty liability based on time bar
3. Applicability of Supreme Court judgment in Mediwell Hospital case
4. Comparison with Tribunal's decision in Dewan Chand case

Analysis:

1. The judgment concerns an application for the waiver of pre-deposit of duty of Customs and interest amounting to Rs. 3,98,20,933 and Rs. 79,64,186 respectively, as ordered by the Commissioner of Customs in an appeal. The applicants sought complete waiver, but the Revenue opposed, arguing a continuing duty liability exempt from limitation due to a bond executed during importation.

2. The Revenue relied on the Hon'ble Supreme Court's judgment in Mediwell Hospital case to support their position that the duty demand was not time-barred. The Revenue contended that the duty liability on imported medical equipment is continuous under Notification No. 64/88-Cus, making the challenge on time bar unsustainable. The provisional nature of assessment due to a bond executed was highlighted to argue against the application of the law of limitation.

3. The applicants, through an Advocate, referenced a Tribunal decision in Dewan Chand case where a similar issue was decided in favor of the assessee, holding the duty demand time-barred under Section 28 of the Customs Act. The Tribunal in Dewan Chand case found the Supreme Court's judgment inapplicable to their facts, leading to a decision in favor of the assessee. The lack of a stay on the Tribunal's decision in Dewan Chand case allowed its application in the present case.

4. The Tribunal, after considering the submissions and precedents, found that the applicants had an arguable case and decided to allow the application with a condition. The applicants were directed to deposit Rs. 25 lakhs within 8 weeks, with a waiver of pre-deposit for the balance amount upon compliance. The matter was scheduled for compliance review on a specified date. Additionally, the lack of instructions from the applicants' Consultant led to the issuance of the order to another party's address on record.