2016 (6) TMI 190 - AT - Customs

Tribunal grants stay, waives pre-deposit of dues in appeal

M/s. Roshanlal Gupta & Sons Pvt. Limited Versus Commissioner of Customs, Ahmedabad

M/s. Roshanlal Gupta & Sons Pvt. Limited Versus Commissioner of Customs, Ahmedabad - TMI Issues: Stay application pursuant to High Court order, compliance with amended provisions of Section 129-E of Customs Act, 1962, waiver of pre-deposit, confirmation of dues, auction proceedings, liquidation period, recovery of government dues, extended period for demand of duty liability.The judgment pertains to a stay application following a High Court order directing the Tribunal to restore an appeal and decide it in accordance with law, specifically concerning the waiver of pre-deposit under the original Section 129-E of the Customs Act, as it prevailed prior to 06.08.2014. The appellant had initially filed a common appeal against the confirmation of both Excise duty and Customs duty, but was later directed to file separate appeals for each. The Tribunal dismissed the appeal related to Customs duty for non-compliance with the amended provisions of Section 129-E, which required a deposit of 7.5% of the duty amount, as the appeal was filed on 06.08.2014. The appellant argued that a previous stay application related to Customs duty had been granted complete waiver of dues adjudged, and requested the current stay application to be considered similarly.The Tribunal, in a previous order dated 25.11.2014, disagreed with the findings of the adjudicating authority regarding the confirmation of dues, interest, and penalty. It noted that the appellant was the successful bidder in auction proceedings during liquidation by the High Court, emphasizing that the dues were for the pre-liquidation period, not post-liquidation. Additionally, it highlighted that Revenue authorities were aware of the defunct EOU company's winding up and had requested the official liquidator to record their claim for government dues. The Tribunal concluded that the appellant had made a prima facie case for waiver of the dues adjudged, and therefore, waived the pre-deposit of all dues adjudged in the present Appeal, staying its recovery during the pendency of the Appeal. The Tribunal ordered the present appeal to be tagged with other appeals arising from the same order, granting the stay petition.In summary, the judgment addressed issues related to compliance with amended provisions of the Customs Act, waiver of pre-deposit, confirmation of dues, auction proceedings during liquidation, and the government's recovery of dues, ultimately granting the stay application and waiving the pre-deposit of all dues adjudged in the present Appeal.