IMPEX TRADING CO. Vs. COMMISSIONER OF CUSTOMS (I)

JUDGEMENT

(1.) The applications for waiver of pre -deposit of differential duty of Rs. 2,92,902/ - and penalty of Rs. 1 lakh imposed upon the first applicant and penalty of Rs. 40,000/ - imposed upon the second applicant who is the partner of the first applicant firm, arise out of the order of the Commissioner of Customs (Import), Mumbai. The issues in dispute relate to correct classification of goods imported by the applicants, under -invoicing of the goods in question as well as invalidity of import, as part of the value would not be covered by the licence produced by the applicants for clearance of the goods.

(2.) We are informed that the goods have been provisionally released on the importers executing a bond and bank guarantee for Rs. 2,14,303/ -. The applicants undertake to keep the bank guarantee alive during the pendency of the appeals. Since the Revenue has been secured prima facie by the above bank guarantee, we are of the view that no further pre -deposit is called for in the present case and, therefore, waive the pre -deposit of duty and penalties and stay recovery thereof, subject to the condition that the applicants keep alive the bank guarantee until the appeals are disposed of finally.