2013 (11) TMI 341 - AT - Customs

Stay application - Mis declaration of goods - Held that - As regards the application filed by Shri Amar Patel for waiver of pre-deposit of penalty imposed, we find that the lower authorities have recorded a finding that he is a master-mind behind the mis-declaration of the goods in the name of M/s United Agency. The role played by Shri Amar Patel vis-a-vis the findings and the defences raised by the appellant needs to be considered which will require some time and can be done only at the time of final disposal of appeals - Prima facie case not in favour of assessee - Stay granted partly.

Summary

Issues: Stay petitions for waiver of pre-deposit of duty, interest, and penalties; Mis-declaration of goods; Imposition of penalties under Customs Act, 1962; Consideration of deposit by M/s United Agency; Waiver of pre-deposit for Shri Amar Patel; Direction for deposit by Shri Amar Patel; Stay of recovery till disposal of appeals.

The judgment by the Appellate Tribunal CESTAT Ahmedabad, delivered by Mr. M.V. Ravindran, pertains to stay petitions filed for the waiver of pre-deposit of duty amounting to Rs.14,57,477, interest, and penalties, including penalties of Rs.4 lakhs and Rs.6 lakhs on Shri Shaival Patel and Shri Amar Patel, respectively. The lower authorities had confirmed the demand and imposed penalties on M/s United Agency and the two partners of the appellant company for mis-declaration of goods. Shri Amar Patel was penalized under the Customs Act, 1962 for his involvement in the mis-declaration.

Upon hearing both sides, the Tribunal noted that M/s United Agency had already deposited the entire amount of Customs duty confirmed by the lower authorities. Considering this, the Tribunal deemed the amount deposited by M/s United Agency sufficient to hear and dispose of the appeals of M/s United Agency and Shri Shaival Patel. However, with respect to the application filed by Shri Amar Patel for the waiver of pre-deposit of the penalty imposed on him, the Tribunal observed that he was identified as the mastermind behind the mis-declaration of goods. The Tribunal decided that Shri Amar Patel should be subjected to a condition for the hearing and disposal of the appeal, requiring him to deposit Rs.50,000 within eight weeks and report compliance.

The Tribunal directed Shri Amar Patel to report compliance before the Deputy Registrar and, subject to such compliance being reported, allowed the applications for waiver of pre-deposit of the balance amounts involved, staying the recovery until the appeals are disposed of. The judgment emphasizes the need to consider the role played by Shri Amar Patel in the mis-declaration of goods and sets a condition for his further involvement in the appeal process.