Manish Lalitkumar Bavishi vs Commr. of Cus. (Preventive), Mumbai

The appellant challenges the final orders passed by the Customs, Excise and Service Tax Appellate Tribunal, Bench at Mumbai dismissing the appellants appeals for failing to pre-deposit in all Rs. 40.00 lacs in the aggregate in two appeals. In one case 25% of the penalty amount of Rs. 1.00 crore and in other case 50% of the penalty amount of Rs. 30.00 lacs was directed to be pre-deposited i.e. in the aggregate of Rs. 40.00 lacs against the adjudicated penalty aggregating to Rs. 1.30 crores. Learned Counsel for the appellant submits that when the sale proceeds of the seized goods are confiscated in their entirety, there is no justification for directing pre-deposit of such an high amount for the purposes of hearing the appeal on merits. It is submitted that the appellant, himself has not obtained any benefit as the sale proceeds of the goods to be received by him, stood confiscated. It is submitted that the financial position of the appellant is such that he is not in a position to raise the entire amount as directed to be deposited resulting in his appeal being dismissed.

On the other hand, learned Counsel for the respondent opposed the appeal and supported the impugned order.

Having heard the learned Counsel for the parties and considering the facts and circumstances of the case, particularly, in view of the fact that the sale proceeds of the seized goods have been completely confiscated and his difficult financial position, the interest of justice would be served if the appellant is directed to make a total pre-deposit of Rs. 30.00 lacs as against the pre-deposit ordered by the Tribunal at Rs. 40.00 lacs. The appeals are accordingly partly allowed and the impugned final orders of the Tribunal are set aside and on the condition precedent that appellant deposits in an aggregate an amount of Rs. 30.00 lacs in both the appeals.

It is clarified that the amount already deposited of Rs. 12.00 lacs towards the aforesaid pre-deposit amount being Rs. 7.00 lacs and Rs. 5.00 lacs respectively shall be given credit while computing the amount of Rs. 30 lacs. It is accordingly directed that the appellant shall make two separate deposits in the aggregate of Rs. 20.00 lacs and Rs. 10.00 lacs in the two appeals after taking into account the amounts already deposited.

The orders passed by the Tribunal dismissing the two appeals for non-compliance of the pre-deposit order are set aside on the condition precedent that the appellant deposits with the revenue the amounts of Rs. 30 lacs within eight weeks from today. On the deposit being made and evidence being produced before the Tribunal of having deposited the amount within the stipulated period the appeals will be restored by the Tribunal and finally disposed of on merits.

In case the appellant fails to deposit the amount as directed within six weeks from today the orders of dismissal passed by the Tribunal will not be disturbed. Both the appeals are disposed of in the above terms.