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of <h1>High Court reduces pre-deposit in customs case, considering appellant's financial hardship</h1> <h3>Innobiz Electronics Pvt. Ltd. Versus Commissioner</h3> The High Court reduced the pre-deposit amount for an appellant involved in a customs case concerning the misdeclaration of imported goods. Despite the ... Imposition of Pre-deposit – Rejection of Waiver – Whether Tribunal was justified in directing Appellant to deposit amount as pre-deposit when appellant’s goods were still lying under control of Revenue and rejecting total waiver of pre-deposit – Held that:- Authority rejected value declared in bill of entry and re-determined value under Section 28(4) of Customs Act, 1962 – Goods valued at ₹ 33.5 lakhs were directed to be confiscated and allowed to be redeemed on payment of redemption fine – Taking into consideration fact that appellant had already paid sum and appellant undertook not to clear goods till disposal of appeal, it was appropriate to direct deposit further sum of ₹ 50,000/- instead of ₹ 2,00,000/- as directed by Tribunal – Decided partly in favour of Assesse. Issues:1. Justification of directing the appellant to deposit an amount2. Rightfulness of directing pre-deposit when goods are under Revenue control3. Prima facie case for total waiver of pre-depositAnalysis:Issue 1: The Tribunal directed the appellant to deposit Rs. 2,00,000, questioning the justification of this decision. The appellant imported Induction Cooker declared as Spare Parts, but found to be Induction Stove in SKD condition. The Authority re-determined the value at Rs. 12,90,942 under Section 28(4) of the Customs Act, 1962. The goods valued at Rs. 33.5 lakhs were confiscated, with a redemption fine of Rs. 8,00,000 imposed. The Authority also levied penalties on the importer and a partner of the company. The appellant appealed, seeking waiver of pre-deposit and stay of recovery.Issue 2: The Tribunal, after considering the case, directed the appellant to pre-deposit Rs. 2,00,000 within six weeks. The appellant argued financial hardship and cited instances where waiver was granted for similar imports. The High Court considered the appellant's previous payment of Rs. 2,80,000 and the undertaking not to clear the goods until appeal disposal. Consequently, the Court directed the appellant to deposit a reduced sum of Rs. 50,000 instead of the Tribunal's Rs. 2,00,000 decision.Issue 3: The appellant contended that a total waiver of pre-deposit should be granted, emphasizing financial constraints and previous instances of waiver. The High Court, taking into account the appellant's circumstances and the undertaking not to clear the goods, partially allowed the appeal by reducing the pre-deposit amount to Rs. 50,000. The appellant was instructed to deposit the sum within six weeks and provide an undertaking not to clear the goods until the appeal's resolution.
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