2013 (8) TMI 729 - AT - Customs

CESTAT Ahmedabad Grants Waiver on Penalty Pre-Deposit in Customs Act Appeal

The Appellate Tribunal CESTAT Ahmedabad considered a stay petition seeking waiver of pre-deposit of penalty imposed on the appellant under Sections 112(b) ... Illegal diversion of goods. - Stay application – waiver of pre deposit of penalty u/s 112(b) and 114(i) – Held that:- Assessee in his statement accepted that there was some illegality in clearing the muriate of potash - assesseee had not cooperated with the lower authorities during the adjudication proceedings - cout relied upon Maruti Seeds & Fertilisers (2013 (8) TMI 570 - CESTAT AHMEDABAD) - assessee had not made out the case and all the defences taken by him need to be gone into detail which can be done only at the time final disposal of the appeal – The stay petition was filed for the waiver of pre-deposit of the amount of penalty imposed by the adjudicating authority on the appellant under the provisions of Section 112(b) and Section 114(i) – pre-deposit ordered for an amount of Rs.1,25,000 – stay granted partly. Issues:1. Waiver of pre-deposit of penalty under Sections 112(b) and 114(i) of the Customs Act, 1962.Analysis:The Appellate Tribunal CESTAT Ahmedabad considered a stay petition seeking the waiver of pre-deposit of a penalty imposed on the appellant under Sections 112(b) and 114(i) of the Customs Act, 1962. The issue at hand revolved around the illegal diversion of muriate of potash (MOP) by the appellant, who was a distributor of Indian Potash Ltd. and authorized under the Fertilised Control Act. The appellant had admitted to irregularities in clearing the MOP to a specific entity, M/s. Dadi Impex Pvt. Ltd. Despite lack of cooperation with the lower authorities during adjudication, the appellant argued that their case was similar to another case previously disposed of by the bench. The Tribunal noted that the penalties under Section 112(b) may not be applicable as the appellant was not shown as an importer of the goods.Regarding the penalty under Section 114(i) of the Customs Act, the Tribunal found that the appellant had not sufficiently substantiated their case, and all defenses needed detailed examination during the final appeal disposal. Consequently, the Tribunal directed the appellant to pre-deposit Rs.1,25,000 within eight weeks and report compliance by a specified date. Upon compliance verification, the recovery of the balance amounts was stayed until the appeal's final disposal. The Tribunal also ordered the connection of this appeal with another related appeal for joint disposal in due course.In conclusion, the Tribunal granted the waiver of pre-deposit for the balance amounts subject to compliance, allowing the appellant to proceed with the appeal process while ensuring the necessary financial commitment during the interim period.