Misdeclaration and exemption denial: partial waiver of penalty pre-deposit granted where complete air-conditioners were shown as parts.

Prima facie, complete air-conditioners were not covered by Notification No. 53/97-Cus., and the bill of entry description of the goods as components/parts supported the allegation of misdeclaration. On that basis, the Tribunal held that no strong prima facie case was made out for complete waiver of the penalty pre-deposit. Partial relief was therefore granted by directing a limited deposit towards penalty and waiving the balance pre-deposit, with stay of recovery on the amount deposited.

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Issues: Whether complete waiver of pre-deposit of penalty was warranted in a case involving import of complete air-conditioners described as components/parts and alleged misdeclaration.

Analysis: The Tribunal noted, prima facie, that the benefit of Notification No. 53/97-Cus. was not available to complete air-conditioners. It also found, on the face of the bill of entry description, that the goods had been shown as components/parts, which supported the allegation of misdeclaration. In these circumstances, the appellant did not make out a strong prima facie case for total waiver of the penalty pre-deposit.

Outcome: Partial waiver of pre-deposit was granted by directing deposit of Rs. 1 lakh towards penalty, with waiver of the balance penalty pre-deposit and stay of recovery on such deposit.

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