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2016 Supreme(Guj) 1088
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Akil Abdul Hamid Kureshi and Mohinder Pal, JJ.
Rodex International - Appellants
Vs.
Commissioner of Customs - Respondent
Tax Appeal No. 1163 of 2014
Decided On : 04-02-2016
For the Appellant :Nirav P. Shah, Advocate
For the Respondent:R.J. Oza, Advocate
The court's decision was based on the interpretation of Section 129E of the Customs Act in light of the circumstances of the case, particularly the nature of the imported goods and the appellant's financial hardship.
Headnote:
Customs Act - Pre-deposit requirement - Appellant
Fact of the Case:
The appellant, a partnership firm, filed an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) against the judgment of the Commissioner of Customs. The Tribunal required the appellant to make a pre-deposit of a sum of Rs. 5 Lacs, failing which the appeal would be dismissed.
Finding of the Court:
The court considered the fact that the imported goods worth more than the required pre-deposit amount were already in the custody of the Customs Department. It deleted the condition of pre-deposit, taking into account the appellant's plea of financial hardship, and directed the Tribunal to hear the appeal on merits.
Issues: The main issue was whether the condition of pre-deposit imposed by the Tribunal should be upheld, considering the nature of the imported goods and the appellant's financial hardship.
Ratio Decidendi: The court's decision was influenced by the fact that the imported goods were already in the custody of the Customs Department and that the appellant pleaded financial hardship. It interpreted Section 129E of the Customs Act in light of these circumstances and deleted the pre-deposit requirement.
Final Decision: The court deleted the condition of pre-deposit and directed the Tribunal to hear the appeal of the appellant on merits, with clarifications and directions regarding the clearance and release of the goods.
Akil Abdul Hamid Kureshi, J.
1. Appellant is a partnership firm. Appellant had filed appeal before Customs, Excise and Service Tax Appellate Tribunal (CESTAT) against judgment of the Commissioner of Customs. In terms of Section 129E of the Customs Act, appellant had to either make pre-deposit of the duty or seek waiver thereof from the Tribunal. Appellant filed such application upon which the Tribunal by the impugned order required the appellant to deposit sum of Rs. 5 Lacs upon which the remaining recovery would stand stayed. When the appellant was unable to do so, the Tribunal by the impugned order dated 12-5-2014 refused to grant any further extension and consequently, dismissed the appeal for want of compliance of pre-deposit requirement. Learned counsel for the appellant submitted that the imported goods in the nature of memory chips are already in the custody of the Customs Department. In that view of the matter, under Section 129E of the Customs Act, no further condition of pre-deposit can be imposed. Counsel relied on the decision of Supreme Court in the case of Bhavya Apparels Pvt. Ltd. v. Union of India reported in 2007 (216) E.L.T. 347 in this respect.
2. On the other hand, learned counsel, Shri Oza, submitted that the Tribunal considering the facts of the case, the amount of duty, interest and penalty involved has imposed a condition which requires no interference.
3. In view of the fact that the goods worth for more than the said amount of Rs. 5 Lacs is in the custody of the Department, we are inclined to delete the condition of pre-deposit. We have also taken into account the appellant's plea of financial hardship. Considering the facts and circumstances of the case, therefore, the condition of pre-deposit is deleted. The Tribunal shall hear the appeal of the appellant on merits. In Para-9 of the order dated 4-12-2013 of the Tribunal imposing pre-deposit requirement, we notice that the appellant had sought directions for clearance of the goods. Till the appeal is decided, the appellant shall not seek release of the goods. With above clarifications and directions, tax appeal is disposed of.
