2004 (9) TMI 410 - AT - Customs

Tribunal waives duty, penalty for appellant, allows Duty Drawback claim on 'Heat Resistant Rubber Tension Tape'

The Tribunal ruled in favor of the appellant, waiving the pre-deposit of duty and penalty of Rs. 5,00,000 each imposed by the Commissioner of Customs, ... Stay/Dispensation of pre-deposit - Duty and penalty Issues:1. Disallowance of Duty Drawback claim of Rs. 64,80,0002. Interpretation of the exported goods as 'Heat Resistant Rubber Tension Tape'3. Application for waiver of pre-deposit of duty and penaltyAnalysis:The case involved an appeal regarding the disallowance of a Duty Drawback claim amounting to Rs. 64,80,000 and penalties imposed on a company and its director by the Commissioner of Customs, Kandla. The disallowance was based on the assertion that the exported goods were not 'Heat Resistant Rubber Tension Tape' as claimed but were 'Heat Resistant Rubber Tape'. The Tribunal examined the evidence, including a test report indicating that the samples retained their physical properties under specific conditions, suggesting they were indeed 'Heat Resistant Tension Tape'.The Tribunal considered the arguments from both sides and found that there was a strong prima facie case supporting the classification of the goods as 'Heat Resistant Tension Tape'. Consequently, the Tribunal decided to waive the pre-deposit of duty and penalty amounting to Rs. 5,00,000 each on the company and its director. The recovery of the disputed amount was also stayed pending the appeal process. The decision was made by Ms. Jyoti Balasundaram, Vice-President of the Tribunal, highlighting the importance of the evidence presented and the interpretation of the goods in question.