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2014 (10) TMI 800 - AT - CustomsWaiver of pre deposit - import of software - customised software or embedded with the hardware - Benefit of exemption Notification No. 06/06-CE dated 1.3.2006 - Whether the main parties namely M/s Prithvi Information Systems Ltd. (PISL) and M/s Vuppalamritha Magnetic Components Ltd. (VMCL) had deliberately shown the software which was embedded in the system imported by them and supplied to BSNL as customised software separately imported to avoid payment of duty on the software portion of the imported equipment - held that:- while EMS software and other application software have been specified by name, the embedded software is conspicuous by its absence. The fact that the software was imported through one port and hardware was imported through another port also shows that there is planning and conspiracy on the part of the appellants. If the appellants have put themselves in a situation wherein they have committed an offence to reduce the duty liability in their anxiety to become lowest bidders, it would not be appropriate for the Tribunal to lend a helping hand to them by waiving the requirement of pre deposit which in our opinion prima facie was liable to be paid at the time of importation. - appellant directed to deposit entire amount of differencial duty as demanded. - stay denied. Waiver of penalty on other parties and employees - Held that:- it may not be appropriate to require them to deposit the entire amount of penalties imposed on them and in our opinion, the quantum of penalty may also have to be reduced in view of the fact that ultimately, the BSNL has defaulted to both the suppliers and both the suppliers have claimed financial difficulties and further the penalties under Section 114 A have been imposed on the importing parties. - penalty stayed partly.
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