Brief of the case:
In the case of Advance Netways Marketing Pvt. Ltd. Vs. CCE, Hon’ble Bombay High Court denied to interfere in the order of CESTAT who directed to deposit 50 % of total duty payable and 10 % out of penalty payable. Hon’ble Court made such observation after perusing the order passed by CESTAT and held that it appears to us that the learned Tribunal has taken into consideration all the three factors i.e. prima facie case, undue hardship and interest of the Revenue. As such it cannot be said that the discretion exercised by the CESTAT is exercised in a perverse or impossible manner.
Facts of the case:
- Appellant had made export of certain goods declaring the same as automobile parts such as door bidding, fuel pump fitting, front suspension bush, oil seal etc. and availed export benefit by way of Duty Entitlement Pass Book (DEPB) Scheme.
- Appellant against the DEPB credit obtained DEPB Script from the Director General of Foreign Trade which were sold in open market. As per the said Scheme, the bearer of DEPB Script is entitled to import the goods without payment of duty.
- The Customs Authorities started investigation in respect of exports made by Delhi based firms namely M/s S.S. Enterprises, M/s Neel Impex and M/s Agarwal Traders and found that the exported goods were overvalued to get undue DEPB benefit.
- Revenue found that the said applicant was also exporting similar goods, investigation started and it was found that there are many transactions between the present appellants and M/s S.S. Enterprises, M/s Neel Impex and M/s Agarwal Traders.
- The appellants denied their relationship with the aforesaid three firms.
- On the basis of further investigation show cause notices were issued to the Exporters’ firms for recovery of DEPB credit obtained by them and for confiscation of the goods which were exported by declaring higher value and for imposition of penalties.
- The Commissioner of Customs (Exports) vide order dated 30th July 2012 directed the recovery of DEPB credit obtained by the appellants by invoking the extended period of limitation and also imposed penalties on the Exporters as well as other applicants.
- Aggrieved from the order of CCE appellant/exporter filed appeals before CESTAT. And along with appeals, an application for exemption for pre-deposit came to be filed. The said applications were partly allowed. The learned CESTAT directed the appellants to deposit 50% of the duty and 10% of the penalty in each case levied as a pre-condition for hearing the appeals. Being aggrieved thereby, the present appeals.
Contention of the revenue:
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