M/S. Mono Acrylic Mfg. Co. (P) Ltd. Vs. Commissioner of Customs, New - Court Judgment

Excerpt:

.....them was u.s.$ 350 per m.t.which was enhanced by the customs to u.s.$ 500 per m.t. and the goods were released on payment of duty at the enhanced value; that subsequently the department felt that enhanced value was still on the lower side by u.s.$ 30 per m.t.: that in view of this fact no penalty is imposable on them as they had not imported the goods and secondly the customs authorities have themselves determined the value at u.s.$ 500 per m.t. before releasing the goods. we also heard shri p.k. jain, learned sdr.3. it is not disputed by the revenue that the goods were not imported by the applicants, before us. they had purchased the impugned goods.the revenue had not disputed the fact that impugned goods were given customs clearance only after value was enhanced to u.s.$ 500 per m.t.in view of this the applicants have made out a very strong prima facie case in their favour and accordingly we waive the requirement of predeposit of entire amount of penalty imposed on the applicants and stay the recovery of same during the pendency of the appeal.

Judgment:

1. This is an application filed by M/s. Mono Acrylic Mfg. Co. Pvt. Ltd. for waiver of predeposit of penalty amounting to Rs. 6 lakhs imposed by the Commissioner of Customs (General) under the impugned order.

2. Shri J.S. Agarwal, learned Advocate, submitted that the Applicants purchased CRGO Coils from M/s. Kherwal Steel (P) Ltd. on 29.11.97; that the same was seized by the Customs Officers from their premises on 21.2.98; that a show cause notice dated 19.2.99 was issued to them for demanding Customs duty, imposition of penalty and confiscation of the seized goods on the ground that M/s. Kherwal Steel (P)s Ltd. had deliberately declared the value of the imported goods on a lower side; that the Commissioner under the impugned order has imposed a penalty of Rs. 6 lakhs on the applicants besides imposing a penalty of Rs. 20 lakhs on M/s. Kherwal Steel (P) Ltd. The learned Advocate further submitted that when the goods were initially importer by M/s. Kherwal Steels Pvt. Ltd. the value declared by them was U.S.$ 350 per M.T.which was enhanced by the Customs to U.S.$ 500 per M.T. and the goods were released on payment of duty at the enhanced value; that subsequently the department felt that enhanced value was still on the lower side by U.S.$ 30 per M.T.: that in view of this fact no penalty is imposable on them as they had not imported the goods and secondly the Customs authorities have themselves determined the value at U.S.$ 500 per M.T. before releasing the goods. We also heard Shri P.K. Jain, learned SDR.3. It is not disputed by the Revenue that the goods were not imported by the Applicants, before us. They had purchased the impugned goods.

The Revenue had not disputed the fact that impugned goods were given Customs clearance only after value was enhanced to U.S.$ 500 per M.T.In view of this the Applicants have made out a very strong prima facie case in their favour and accordingly we waive the requirement of predeposit of entire amount of penalty imposed on the Applicants and stay the recovery of same during the pendency of the appeal.