PerJ.H. Joglekar :

On hearing both sides on the application for waiver of predeposit of Rs. 30,55,170/- imposed as duty and Rs. 3 lakhs as penalty, we find that the issue being small, the appeal itself could be disposed of. We do so after granting the prayer as made.

2. The appellants were transferee holders of value based advance licences. Imports were made by them during June 1993 to December 1993 in terms of Notification No. 203/92. Show cause notice issued in July 1996 alleged that in the manufacture of export goods input stage credit had been availed of and demanded the duty and sought to levy penalty. The importers filed reply saying that they had received the licence with the transferability claused endorsed thereupon by the DGFT, that they had purchased the licence openly on payment of the premium and that they were not aware of any contravention committed earlier by the transferrers. Copies of the reply were sent to the transferrers also. The Commissioner did not discuss these submissions in his order at all but confirm the duty and imposed penalty.

3. The advance licences are made transferable by the issuing authority on satisfaction that the burden cast upon the holder