2014 (5) TMI 524 - AT - Customs

Waiver of pre-deposit of duty Levy of interest and Penalty Import of Induction cooker - Mis-declaration in description - Undervaluation - Held that - The submission of learned counsel on the importation of induction furnace in SKD condition is a factual matter which will be looked at the time of final hearing of appeal - Hence, assessee has failed to make out a prima facie case for total waiver of pre-deposit - Accordingly, applicant is directed to make a further deposit of ₹ 2,00,000/- (Rupees two lakhs only) - Upon such deposit, pre-deposit of balance amount of duty along with interest and penalty stands waived and recovery thereof stayed during pendency of appeal - Accordingly, early hearing application is dismissed as infructuous Conditional Stay granted.

Summary

Issues: Application for waiver of predeposit of duty, mis-declaration of imported goods, undervaluation, assessment under Section 4A of the Central Excise Act, 1944, goods imported in SKD condition, early hearing application.

Analysis:

The judgment pertains to an application for waiver of predeposit of duty amounting to Rs.12,90,942/- along with interest and penalty. The applicant imported 'COOKMATE' brand induction cookers, allegedly mis-declared as spare parts of induction cookware to avoid MRP-based assessment and undervalued in terms of value and quantity. The counsel did not dispute the undervaluation of about Rs.4.5 lakhs but raised a strong contention regarding the assessment under Section 4A of the Central Excise Act, 1944, asserting that the goods were in SKD condition and not ready for retail sale, hence Section 4A should not apply. The AR highlighted that each carton contained four retail packs, each with a complete induction cookware in SKD condition.

Upon considering the submissions and perusing the impugned order, the Tribunal found merit in the AR's submission. The issue of importation of induction cookware in SKD condition was deemed a factual matter to be examined during the final appeal hearing. Consequently, the applicant failed to establish a prima facie case for a total waiver of predeposit. The Tribunal directed the applicant to make a further deposit of Rs.2,00,000/- within six weeks, with the balance amount of duty, interest, and penalty being waived upon compliance, and recovery stayed during the appeal's pendency. As the stay application was disposed of, the Tribunal dismissed the early hearing application as infructuous, indicating no need for an expedited appeal hearing at that stage.

In conclusion, the judgment addressed the issues of misdeclaration, undervaluation, and the application for waiver of predeposit in the context of imported goods assessed under Section 4A of the Central Excise Act, 1944. The decision highlighted the importance of factual considerations regarding the condition of imported goods for determining the applicability of relevant provisions.