Waiver of Pre-Deposit and Penalty Granted in Customs Duty Case

The Appellate Tribunal CESTAT, New Delhi granted waiver of pre-deposit of duty of Rs. 54,72,063/- and penalty of Rs. 5 lakhs in a case involving a 100% EOU liable for additional duty of customs. The Tribunal found a prima facie case for waiver, considering duty payment upon goods clearance from the warehouse. Recovery of duty and penalty was stayed pending appeal.

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The Appellate Tribunal CESTAT, New Delhi granted waiver of pre-deposit of duty of Rs. 54,72,063/- and penalty of Rs. 5 lakhs in a case where a 100% EOU was held liable to pay additional duty of customs. The Tribunal found a prima facie case for waiver based on the submission that duty is payable only when goods are cleared from the warehouse. Recovery of duty and penalty was stayed pending appeal scheduled for hearing on 23-6-2005.

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