1994 (11) TMI 245 - AT - Central Excise

Tribunal Upholds Decision on Import Software Case: Pre-Deposit Orders for Appellants

The Tribunal upheld the lower authority's decision, directing the appellants to pre-deposit Rs. 20 lakhs and Dr. Kothawala to pre-deposit the full penalty ... Stay/Dispensation of pre-deposit to multi-national companies Issues:Dispensation of pre-deposit of duty and penalty imposed on the appellants.Analysis:The appellants sought dispensation of pre-deposit of a duty of Rs. 63,04,570/- and penalties imposed on them. The appellant, an expert in computer software, was found carrying software valued at Rs. 1,39,17,000/- without declaring it to customs. The appellant claimed the software was not for use in India but for Japan, and that the imported software sold was actually manufactured in India. The authorities relied on statements of a former manager and found discrepancies in the appellant's operations. The Departmental Representative argued that the appellant admitted to smuggling goods without declaration. The Tribunal observed that the appellant had imported software without declaration, and various evidence indicated the appellant's involvement in selling imported software without paying customs duty. The Tribunal found no infirmity in the lower authority's order. The appellant was directed to pre-deposit Rs. 20 lakhs, and Dr. Kothawala was to pre-deposit the entire penalty of Rs. 1,00,000 by a specified date.The appellant's plea of financial hardship was considered, but the Tribunal noted the company's affiliation with multinational entities and questioned certain financial entries. The Tribunal ordered the appellant company to pre-deposit Rs. 20 lakhs and Dr. Kothawala to pre-deposit the full penalty amount by a specified date. The Tribunal emphasized the seriousness of the case and the role of Dr. Kothawala in the matter. Compliance was to be reported on a set date, pending appeal. The judgment highlighted the failure to declare imported software, discrepancies in the appellant's operations, and the necessity for pre-deposit of specified amounts by the appellants.