2014 (1) TMI 1578 - HC - Customs

Stay application - Waiver of pre deposit - Stay on imposition of redemption fine - Partial assessment duty paid - Held that - The stay on redemption fine would normally follow from a stay of the order being challenged before the Tribunal. The jurisdiction of the Tribunal to stay the order being appealed against before it is not under Section 129E of the Act but is in the exercise of its inherent power as an Appellate Authority. This power is to be exercised in exceptional circumstances. In this case, nothing has been brought to our notice to show circumstances which would warrant the Tribunal exercising its inherent power to stay the order dated 30 November 2011 of the Commissioner of Customs or the redemption fine imposed therein - appeal itself would be listed for final hearing in the near future, we are of the view that the interests of justice would require that the respondent-revenue be restrained from adopting any coercive proceedings for recovery of redemption fine of Rs.78 lakhs till the final disposal of the appeal before the Tribunal - Decided in favour of assessee.

Summary

Issues:
Challenge to order under Section 130 of the Customs Act, 1962 regarding pre-deposit for appeal on merits.

Analysis:
The appellant challenged an order by the Customs, Excise and Service Tax Appellate Tribunal (the Tribunal) directing pre-deposit of a sum for entertaining the appeal. The appellant, engaged in manufacturing air conditioner assemblies, imported goods classified differently by the department. The Commissioner of Customs held a misdeclaration and misclassification, ordering duty recovery and confiscation. The Tribunal initially directed pre-deposit against the duty, later modifying the amount. The High Court noted the appellant had already paid a substantial amount of the duty demanded and found it sufficient for entertaining the appeal. The Court also addressed the issue of redemption fine, holding that no pre-deposit was required for it. The Court directed the Tribunal to hear and decide the appeal without further deposit, with interim stay against coercive recovery until final disposal, emphasizing expeditious resolution by a specified date.