2015 (5) TMI 92 - AT - Customs

Clandestine removal of the imported goods - violation of the EXIM Policy 1997 - 02 - goods were removed and sold in the open market - Contravention of Section 45(2)(b) of the Customs Act, 1962 - Held that - adjudicating authority has given detail finding on this issue - Partial stay granted.

Summary

Issues:
1. Request for adjournment due to illness
2. Clandestine removal of imported goods in violation of EXIM Policy and Customs Act
3. Stay applications for waiver of predeposit of penalty

Analysis:

Issue 1: Request for adjournment due to illness
The representative of the applicant requested an adjournment of the hearing due to illness. However, upon reviewing the records, it was noted that the matter had been adjourned previously at the request of the learned counsel. Consequently, all stay applications were taken up for disposal after hearing the learned AR for Revenue.

Issue 2: Clandestine removal of imported goods in violation of EXIM Policy and Customs Act
The case involved the illegal removal and sale of 32 used printing mini-offset machines, which were originally imported by M/s. Gold Line Offset Printers. The goods were removed from M/s. Indev CFS by a partner of M/s. Orjay Process Pvt. Ltd. at the request of another party, and subsequently sold in the open market. This act contravened the provisions of the EXIM Policy 1997-02 and violated Section 45(2)(b) of the Customs Act, 1962. The original importer disowned the goods during the investigation, leading to the finding of the illegal removal and sale of the goods.

Issue 3: Stay applications for waiver of predeposit of penalty
The applicants filed stay applications seeking a waiver of the predeposit of penalty. The impugned order revealed that the applicants were indeed involved in the clandestine removal of imported goods, as detailed by the adjudicating authority. Consequently, the applicants were directed to predeposit the penalty amounts within six weeks. The specified amounts were to be reported for compliance by a certain date. Upon such deposit, the predeposit of the balance penalty amounts would be waived, and the recovery thereof stayed during the pendency of the appeal.

In conclusion, the judgment outlined the issues related to the request for adjournment, the clandestine removal of imported goods in violation of the EXIM Policy and Customs Act, and the stay applications for the waiver of predeposit of penalty. The decision provided a detailed analysis of the facts and directed the applicants to comply with the specified penalty amounts within a designated timeframe.