2015 (11) TMI 815 - AT - Customs

Waiver of pre deposit - Seizure of goods - Demand of differential duty - Import of heavy slack wax, residue wax and slack wax - misdeclaration of value on the imported goods and DRI investigated the case - Held that - On perusal of Bill of Entry No. 437564 dated 29.5.2008 we find that the bill of entry was filed for home consumption and the description clearly shows that the bill of entry for clearance of home consumption provisional. Further, we find from letter dated 20.5.2015, produced by learned AR, issued by Commissioner of Customs, Tuticorin, wherein he has confirmed all the 21 bills of entries were provisionally assessed on executed of bond as samples have been sent for testing in order to ascertain the classification and value. The Commissioner also confirmed that the bills of entries are not finalized till date and Bill of Entry No. 4378411 dated 17.8.2011 is not assessed provisionally and was assessed finally. Prima facie, we find that all the 21 bills of entries related to past clearance were assessed provisionally whereas the present order is silent on the finalization of the bills of entries provisionally assessed. Therefore, prima facie, there is merit on the appellant s plea insofar as the 22 bills of entries are concerned as the demand was confirmed under section 28 and value was enhanced without finalizing the provisional assessment of said bills of entries. - adjudicating authority has already appropriated an amount of ₹ 19,47,067/- deposited by the appellant on the basis of the orders of the Hon ble High Court of Madras. In view of the appropriation made in the impugned order, we find that the amount already paid and appropriated would be sufficient for the purpose of waiver of balance amount of dues. - Stay granted.

Summary

Issues:
Import of heavy slack wax, residue wax, and slack wax by the appellants; Seizure of goods by DRI on suspicion of undervaluation; Release of goods on deposit and bond as per High Court orders; Show-cause notice proposing confiscation and demanding differential duty; Confiscation of seized goods, redemption fine, penalties imposed; Provisional assessment of bills of entries pending finalization; Enhancement of value without finalizing bills of entries; Applicability of case laws on provisional assessment; Adjudicating authority's findings on provisional assessment and valuation; Prima facie merit in appellant's plea regarding past consignments; Waiver of predeposit for past consignments and live bills of entries.

Detailed Analysis:
The judgment concerns the import of heavy slack wax, residue wax, and slack wax by the appellants, which were seized by DRI due to suspected undervaluation. The goods were released on deposit and bond following High Court orders. Subsequently, DRI issued a show-cause notice proposing confiscation and demanding differential duty, leading to the adjudicating authority confiscating the seized goods, imposing fines, and penalties. The authority also demanded differential duty for both live bills of entries and past consignments of 22 bills of entries.

The appellants argued that the bills of entries were provisionally assessed and not finalized, making the demand for differential duty on past consignments unjustifiable. They cited relevant case laws supporting their contention. On the other hand, the Revenue's representative supported the adjudicating authority's findings, emphasizing that once valuation is done, there is no provisional assessment.

Upon review, the Tribunal found merit in the appellant's plea regarding the past consignments, noting that the bills of entries were provisionally assessed and not finalized. Citing a High Court decision, the Tribunal concluded that short levy does not arise when goods are not provisionally assessed. Consequently, the Tribunal granted a waiver of predeposit for the past consignments.

Regarding the live bills of entries, the Tribunal observed that the amount already paid and appropriated by the appellants, based on High Court orders, was sufficient. Therefore, the Tribunal granted a full waiver of predeposit for the past consignments and waived the balance dues demanded on the live bills of entries, staying their recovery during the appeal process.