Waiver of Penalties for Minimal Involvement in MOP Diversion

Shri Anupam Krishi, M/s Classic Freight Forwarders and M/s Ashoka Salt Refinery Industries Versus CC., Kandla

Shri Anupam Krishi, M/s Classic Freight Forwarders and M/s Ashoka Salt Refinery Industries Versus CC., Kandla - TMI Issues:
1. Stay petitions for waiver of pre-deposit of penalties under Section 114(i) and Section 114 AA of the Customs Act 1962.

Analysis:
1. The penalties were imposed on appellants for aiding/abetting diversion of Muriate of Potash (MOP) imported at concessional duty for fertilizer use. Each appellant's role was examined individually.
2. Shri Vijay Singh Gohil, a transporter, claimed innocence, offering Rs One lac for pre-deposit. Shri Chhaganlal Arun, an employee of CHA, argued signing documents without authorization did not warrant penalty. Shri Anupam Krishi, a registered fertilizer dealer, maintained innocence as he invoiced MOP to farmers and dealers lawfully. M/s Classic Freight Forwarders did not appear.
3. M/s Ashoka Salt Refinery Industries denied involvement in MOP export, stating they issued one invoice without knowledge of its use. Revenue alleged collusion among appellants for MOP export.

4. The Tribunal reviewed previous stay orders but found deeper analysis necessary due to individual roles. Prima facie, appellants' activities seemed to contravene Customs Act provisions.
5. The Tribunal decided to examine individual roles in detail during final appeal disposal, as it would require substantial time.
6. M/s Ashoka Salt Refinery Industries' waiver application was granted due to minimal involvement. Other appellants were directed to deposit specific amounts by a set date.
7. Compliance reports were to be submitted by the specified date for further orders. Waiver of the remaining penalty amounts was subject to compliance and stayed until appeal disposal.