Tribunal waives duty demand in import case due to lack of evidence

The tribunal found insufficient evidence to support the duty demand against the appellant-company accused of importing goods without paying duty. The appellant claimed ignorance of the imports and questioned the basis of the show cause notice issued by the Commissioner. The tribunal noted the lack of substantive investigation and evidence of fraud. As a result, the tribunal waived the pre-deposit of dues and stayed the recovery until the appeals were finalized, granting the stay petitions unconditionally. The appeals were set for final disposal on a specified date.

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Issues: Alleged duty evasion through import of goods without payment, issuance of show cause notice, waiver of pre-deposit of dues

In the judgment, the appellant-company was accused of importing goods without paying duty amounting to Rs. 2,53,07,032. The goods included polyester yarn, polyester fabrics, woollen yarn, synthetic waste, among others, cleared through 26 bills of entry. The investigations began with a factory search. The appellant-director claimed ignorance of these imports, questioning the basis of the show cause notice issued by the Commissioner. The notice alleged serious fraud without substantial evidence, as no efforts were made to verify the imports or contact the relevant authorities. The appellant requested copies of bills of entry, which were not provided. The tribunal noted the lack of evidence supporting the duty demand and emphasized the need for substantive investigation to prove the alleged fraud.

Regarding the imports covered by the 26 bills of entry, the whereabouts of the consignments were unknown, with the appellants denying any involvement in the imports. Despite the prolonged duration of the stay petitions, the department failed to disclose the basis for the show cause notice. Consequently, the tribunal decided to waive the pre-deposit of dues and stayed the recovery until the appeals were disposed of, granting the stay petitions unconditionally. The appeals were scheduled for final disposal on a specified date.

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