2013 (2) TMI 172 - AT - Customs

Waiver of Pre-deposit - Mis-declaration or suppression of fact - Undue DEPB benefit - Assessee manufactured and exported the goods describing as Roller for Auto Brake Shoe - Revenue argued that the applicant wrongly described the goods as Roller For Auto Brake Shoe whereas in fact the goods were Slack Adjuster Assembly Held that - Shipping Bill the applicant declared the goods as Roller For Auto Brake Shoe (Slack Adjuster Assembly). In respect of the earlier export, the matter was examined by the Customs authorities and it was decided that the applicant are entitled for DEPB benefit in respect of the same goods. Now the Revenue wants to deny the benefit on the ground that Roller for Auto Brake Shoe are different from Slack Adjuster Assembly. In these circumstances, as the applicant declared Slack Adjuster Assembly also in the Shipping Bill, prima facie, there is merit in the contention that the allegation of misdeclaration or suppression of fact is not sustainable. Stay granted

Issues:
1. Waiver of pre-deposit of duty, interest, and penalty.
2. Misdeclaration of goods for availing DEPB benefit.
3. Liability for penalty due to misdeclaration.
4. Customs duty demand on the importer.
5. Validity of DEPB benefit for Slack Adjuster Assembly.
6. Stay on recovery of dues during appeal.

Analysis:
1. The applicant sought a waiver of pre-deposit of duty amounting to Rs.15,80,994, interest, and penalty of Rs.3.65 Crores. The Revenue alleged that the applicant misdeclared goods as 'Roller For Auto Brake Shoe' to avail DEPB benefit, which was actually 'Slack Adjuster Assembly' not entitled to the benefit. The applicant contended that there was no misdeclaration with the intent to avail undue benefit, thus not liable for penalty.

2. The Revenue argued that the applicant misdeclared goods to avail undue DEPB benefit, as confirmed by lower authorities. They stated that the DEPB script issued for Slack Adjuster Assembly was canceled by DGFT, making the applicant liable for duty on goods imported based on the script. However, the Tribunal found merit in the applicant's contention as the Shipping Bill declared the goods as 'Roller For Auto Brake Shoe (Slack Adjuster Assembly)', indicating no suppression of facts. Therefore, the pre-deposit of dues was waived, and recovery stayed during the appeal process.

3. The applicant's defense was supported by the Shipping Bill's declaration and the previous examination by Customs authorities, which confirmed DEPB benefit eligibility for the goods. The Tribunal noted that the Revenue's attempt to deny benefits based on a distinction between 'Roller for Auto Brake Shoe' and 'Slack Adjuster Assembly' lacked merit, as both descriptions were declared in the Shipping Bill. Consequently, the Tribunal allowed the stay petition, ruling in favor of the applicant.

4. The Tribunal's decision highlighted the importance of accurate declaration in Shipping Bills and the examination of goods for DEPB benefit eligibility. By considering the applicant's submissions and the Revenue's arguments, the Tribunal concluded that the applicant's declaration of goods was not misleading, warranting a waiver of pre-deposit and a stay on recovery pending the appeal.

5. In conclusion, the Tribunal's judgment emphasized the need for thorough examination of goods and accurate declaration to determine entitlement to benefits like DEPB. The decision to waive pre-deposit and stay recovery during appeal underscored the Tribunal's commitment to fair adjudication and consideration of all relevant factors in customs duty disputes.

← Previous Next →