Vision Minerals and Energy vs Commissioner of Customs and Central Excise

The appellant seeks to challenge an order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 8th May, 2014 on an application for waiver of the requirement of pre-deposit. The Tribunal as against the penalty of Rs. 50.00 lacs has directed the appellant to deposit an amount of Rs. 20.00 lacs within a period of four weeks of the date of the impugned order. The allegation against the appellant is that an investigation revealed that a consignment of 1000 metric tonnes of Muriate of Potash (MOP) of fertilizer grade covered by four shipping bills dated 8th October, 2009 which has been procured from M/s. Lalta Prasad & Sons, Lucknow was attempted to be exported, misdeclaring the same as Oil Well Chemical (drilling chemical additive). The goods were seized and confiscated on the ground that they were smuggled in violation of the relevant notification of the DGFT.

The Tribunal has noted prima facie that the goods which were attempted to be exported were MOP as demonstrated by the report of two laboratories and other material facts and evidence on record. The appellant failed to establish that it had procured the goods from a seller. Having regard to all the facts and circumstances, a direction for pre-deposit of Rs. 20.00 lacs has been issued by the Tribunal.

Learned Senior Counsel appearing on behalf of the appellant submits that in a similar case, the Ahmedabad Bench of the Tribunal had observed that an offer for the pre-deposit of Rs. 2.50 lacs was a fair offer as against a demand of Rs. 1.50 crores and had ordered accordingly.

We have duly perused the order of the Ahmedabad Bench dated 19th December, 2012. The order of the Ahmedabad Bench of the Tribunal virtually contains no reason at all. On the contrary, in the impugned order, the Tribunal has furnished cogent reasons and also dealt with the issue of financial hardship. On the balance, the Tribunal has directed a deposit of Rs. 20.00 lacs. The impugned order of the Tribunal does not suffer from any perversity nor does the appeal raise any substantial question of law. However, the time for depositing Rs. 20.00 lacs granted by the Tribunal is extended by a further period of four weeks. The appeal is, accordingly, dismissed. There shall be no order as to costs.