M/S. Kumar Electricals, Delhi Vs. Commissioner of Customs - Court Judgment

Excerpt:
1. this is an application for waiver of pre-deposit and stay of recovery of penalty of rs. 50,000/- imposed upon the applicants herein on the ground that they misdeclared description and country of origin of energy saving bulbs imported by them and on the ground of undervaluation of the bulbs. it is the finding of the adjudicating authority that the wattage of the lamps was misdeclared. the value of the goods has been loaded for the purpose of assessment and the declared value has been rejected. the goods have been confiscated with the option to redeem the same on payment of fine of rs. 2 lakhs.2. on hearing shri l.p. asthana, ld. counsel and shri p.k. jain, ld. dr and noting that the goods valued at over rs. 17 lakhs are in the custody of the department and have not been cleared by the importers, we are of the view that no pre-deposit is prima facie called for. hence we dispense with the pre-deposit of penalty and stay of recovery thereof during the pendency of the appeal. we direct that the applicants shall not clear the goods in question until final disposal of this appeal.3. the miscellaneous application for raising additional ground is directed to be listed along with the main appeal.

Judgment:
1. This is an application for waiver of pre-deposit and stay of recovery of penalty of Rs. 50,000/- imposed upon the applicants herein on the ground that they misdeclared description and country of origin of energy saving bulbs imported by them and on the ground of undervaluation of the bulbs. It is the finding of the adjudicating authority that the wattage of the lamps was misdeclared. The value of the goods has been loaded for the purpose of assessment and the declared value has been rejected. The goods have been confiscated with the option to redeem the same on payment of fine of Rs. 2 lakhs.

2. On hearing Shri L.P. Asthana, ld. Counsel and Shri P.K. Jain, ld. DR and noting that the goods valued at over Rs. 17 lakhs are in the custody of the Department and have not been cleared by the importers, we are of the view that no pre-deposit is prima facie called for. Hence we dispense with the pre-deposit of penalty and stay of recovery thereof during the pendency of the appeal. We direct that the applicants shall not clear the goods in question until final disposal of this appeal.

3. The miscellaneous application for raising additional ground is directed to be listed along with the main appeal.