2014 (2) TMI 1263 - HC - Customs

Customs Act: Pre-deposit Order Set Aside, Appellant Prevails

The Court set aside the pre-deposit order of 20,00,000 under Section 129E of the Customs Act, 1963, ruling in favor of the appellant. The Court found the ... Condition of pre-deposit - the appellant submitted that the deposit contemplated under section 129E of the Customs Act can be directed only in those cases where the duty or interest or penalty has been levied in respect of the goods which are not under the control of the Customs authorities. In this case, admittedly the Customs authorities are in possession of 270 bales of the goods. Out of those 270 bales, Mr. Chowdhury, learned Advocate pointed out that by the impugned order, 70 bales were released. Held that:- in the facts and circumstances of the case, pre-deposit could not have been claimed or directed to be made. Therefore, the order to that extent is wrong and is set aside. Issues: Validity of pre-deposit order under Section 129E of the Customs Act, 1963Analysis:1. Issue: Validity of pre-deposit order under Section 129E of the Customs Act- The appeal challenged an order directing the assessee to pay a pre-deposit of &8377; 20,00,000 under Section 129E of the Customs Act, 1963.- The appellant argued that the deposit under Section 129E can only be directed when duty, interest, or penalty is levied on goods not under Customs control.- It was highlighted that out of 270 bales of goods, 70 bales were already released by the Customs authorities, indicating control over the goods.- The appellant contended that demanding a further deposit of &8377; 20,00,000 was unjustified and illegal due to the Customs authorities' possession of the goods.2. Court's Analysis and Decision- The Court acknowledged the possession of 270 bales of goods by the Customs authorities and the release of 70 bales.- After considering the arguments, the Court found that in the circumstances of the case, the pre-deposit order was unwarranted and incorrect.- Consequently, the Court set aside the order for pre-deposit, ruling in favor of the appellant.- The judgment concluded by disposing of the appeal, thereby resolving the issue of the validity of the pre-deposit order under Section 129E of the Customs Act, 1963.