Partial waiver of pre-deposit in customs misdeclaration dispute; importer company ordered to deposit part of the penalty.

In a customs appeal involving alleged misdeclaration of imported goods, the tribunal treated the prima facie visual finding that the consignment was substantially different from declared waste paper as sufficient to refuse complete interim relief. It nonetheless granted only partial waiver of pre-deposit, reducing the burden for the importer company while protecting the balance of the penalty demands. The importer company was directed to deposit Rs. 1 lakh, and waiver and stay were allowed for the remaining penalty and for the penalties imposed on the other applicants.

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Issues: Waiver of pre-deposit of penalty in a customs appeal where the imported goods were alleged to have been misdeclared and only partial waiver was sought.

Analysis: The goods were found, on prima facie visual examination, to be substantially different from the declared waste paper, with the bulk consisting of good quality art paper packed and marked in a manner suggesting commercial quality goods. The claim for complete waiver was not accepted at the interim stage, though the facts justified granting relief to the extent of reducing the pre-deposit burden. Pre-deposit was directed in part for the importer company, while waiver was granted for the remaining appellants.

Conclusion: Partial waiver of pre-deposit was granted. The importer company was required to deposit Rs. 1 lakh, and waiver and stay were allowed for the balance penalty and for the penalties on the other applicants.

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