2015 (9) TMI 920 - AT - Customs

Waiver of pre deposit - Penalty u/s 114A - exemption from payment of duty in terms of Notification No.48/1999-CUS dated 29.4.1999 - diversion of imported goods to DTA - export obligation - Held that - Applicant had not fulfilled the export obligation as required therefore, we are of the view that the applicant could not able to make out a prima facie case for total waiver of pre-deposit of dues adjudged in both the cases. - Partial stay granted.

Summary

Issues:
- Waiver of pre-deposit of customs duty and penalty under section 114A of Customs Act, 1962 in two appeals.

Analysis:
In the judgment delivered by Dr. D.M. Misra, the issue involved two applications seeking waiver of pre-deposit of customs duty and penalty imposed under section 114A of Customs Act, 1962 in two separate appeals. The applicants failed to appear, but a request was made for the matter to be decided on merit. The Revenue's representative presented the case, highlighting that the applicant had imported textile products against advance licenses claiming duty exemption but failed to fulfill the export obligation, diverting goods in the local market. The Commissioner and Order-in-Original confirmed the non-compliance, leading to the demand. The Tribunal found that the applicant did not fulfill the export obligation, establishing a prima facie case against total waiver of pre-deposit. Therefore, the Tribunal directed the applicant to deposit 7.50% of the dues in each case within eight weeks, failing which would result in dismissal of the appeals without further notice.

This judgment underscores the importance of fulfilling export obligations when claiming duty exemptions under relevant notifications. The Tribunal carefully considered the facts presented by the Revenue and found the applicant's non-compliance with the conditions, leading to the imposition of duty and penalties. The Tribunal's decision to require a partial deposit of the dues reflects a balanced approach, allowing for the waiver of the remaining amount upon compliance. The timeline provided for the deposit and the consequence of non-compliance demonstrate the seriousness with which such matters are handled, emphasizing the need for timely and appropriate actions by the parties involved to avoid adverse outcomes in legal proceedings.