SONY INDIA LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition is directed against on order of the Customs Excise and Gold (Appellate) Tribunal, New Delhi (hereinafter referred to as the CEGAT) dated 17th September, 1999 whereby the petitioner was directed to deposit an amount of Rs. 20.00 crores towards duty within eight weeks from the date of receipt of the said order as a condition precedent for hearing the appeal filed by the petitioner before the CEGAT against the order dated 30th January, 1999 passed by the Commissioner of Customs, ICD, New Delhi imposing a duty in the sum of Rs. 42,89,75,196.00 and a penalty of Rs. 30,19,92,183.00 on the petitioner.

(2.) Briefly, the facts are that the petitioners are engaged in the manufacturer of colour television (CTV) sets under the 'SONY' brand name in their factory at Dharuhera in the State of Haryana. According to the petitioner, at the relevant time they imported various components for the manufacture of colour TVs. On arrival of the respective consignments, the petitioner filed bills of entry which were assessed by the Customs authorities after due scrutiny and custom duty was paid accordingly on the components. The components so imported were used by the petitioners in the manufacture of CTVs in their factory. The CTVs so manufactured were meant for either export or for use in the domestic market. Petitioners paid excise duty at the applicable rates on the CTVs. In all 94 consignments of components of CTVs were imported during the relevant period from April 1995 to January 1997.

(3.) A show cause notice dated 4th March, 1997 was served on the petitioner in which the 94 consignments of components of CTVs imported by it were clubbed together and it was proposed to assess them to customs duty as colour televisions. In the show cause notice a demand on account of differential duty amounting to Rs. 42,89,75,196.00 was suggested. The Commissioner of Customs, ICD, New Delhi, respondent No. 3, adjudicated upon the show cause notice and passed an order dated 30th January, 1999 confirming the duty proposed in the show cause notice and also imposing a penalty of Rs. 30.19 crores on the petitioners. The petitioners filed appeal against the said order of respondent No. 3 before the CEGAT. On the application seeking exemption from requirement of pre-deposit of the duty and penalty amount filed along with the appeal, the CEGAT passed the impugned order directing the petitioner to deposit an amount of Rs. 20.00 crores as a condition precedent for hearing the appeal.