Prima facie overvaluation test justified waiver of pre-deposit in a customs penalty appeal.

Waiver of pre-deposit of penalty under Section 114 of the Customs Act was granted pending appeal because the appellant showed a prima facie case. The exports had been assessed on an allegation of overvaluation to obtain higher DEPB benefit, but the Tribunal noted that the difference between the declared value and the market value remained within the limit indicated in the Board's circular, which permitted acceptance of value up to 150% of the market value of the same goods. On that prima facie assessment, the Tribunal dispensed with pre-deposit during the appeal.

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Issues: Whether waiver of pre-deposit of the penalty imposed under Section 114 of the Customs Act, 1962 was warranted pending appeal, and whether the appellant had made out a prima facie case.

Analysis: The appellant's exports were assessed on the basis of an alleged overvaluation for availing higher DEPB benefit. The Tribunal noted that the difference between the declared value and the market value was within the limit indicated in the Board's circular permitting acceptance of value up to 150% of the market value of the same goods. On that prima facie assessment, the Tribunal found sufficient grounds to dispense with pre-deposit during the pendency of the appeal.

Conclusion: Waiver of pre-deposit of penalty was granted in favour of the appellant.

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