2013 (12) TMI 121 - AT - Customs

Demand of differential duty - Waiver of pre deposit - Under valuation of goods procured - Held that - asking to deposit entire amount of duty interest and penalty and also the penalties imposed on other partners by first appellate authority to hear the appeals seems to be harsh. In our view the appellant should be put to some condition to hear and dispose the appeal by first appellate authority as they have not made the prima facie case for complete waiver of the amounts involved - Stay granted partly.

Summary

Issues: Stay petitions for waiver of pre-deposit of duty, fine, and penalty; Dismissal of appeal for non-compliance of pre-deposit; Allegations of under-valuation of goods; Requirement of deposit for hearing the appeal.

In the judgment by the Appellate Tribunal CESTAT AHMEDABAD, the issue revolved around Stay Petitions filed for the waiver of pre-deposit of differential duty, redemption fine, and penalties imposed on the appellant firm and its partners. The Tribunal, comprising Mr. M.V. Ravindran and Mr. B.S.V. Murthy, noted that the first appellate authority had dismissed the appeal due to non-compliance with the pre-deposit order. The Tribunal decided to dispose of the appeals directly, considering the dismissal of the Stay Petitions with the consent of both parties.

The Tribunal examined the allegations of under-valuation of goods, specifically parts of textile machinery procured from Hong Kong, against the appellant. The Revenue relied on evidence suggesting under-valuation directed by the appellant, reaching up to 42% in some Bills of Entry. Despite refraining from delving into the merits of the case, the Tribunal found the requirement of depositing the entire amount of duty, interest, and penalties, including personal penalties on partners, to be harsh. The Tribunal believed that the appellant should be subject to certain conditions to allow the first appellate authority to hear and decide the appeal, as a complete waiver was not justified without establishing a prima facie case.

Consequently, the Tribunal directed the appellant to deposit Rs.10 lakhs within twelve weeks and report compliance to the first appellate authority. Upon compliance, the first appellate authority was instructed to restore all appeals to their original status and adjudicate them on merit following principles of natural justice. The Stay Petitions and appeals were disposed of in accordance with the specified directives, emphasizing the necessity of the deposit for the appeal process to proceed effectively.