1994 (7) TMI 184 - AT - Customs

Summary

Issues:
1. Appeal against order passed by Collector of Customs (Appeals), Bombay.
2. Encashment of bank guarantees before the expiry of the specified period.
3. Dispensing with the pre-deposit of the remaining duty amount.
4. Direction regarding recovery proceedings and encashment of bank guarantee.
5. Request for out of turn hearing due to recurring effect.

Analysis:

1. The appeal was filed by M/s. Modi Champion Ltd. against the order passed by the Collector of Customs (Appeals), Bombay. The appellant had filed a Writ Petition in the Bombay High Court, where the court directed the appellant to furnish a bank guarantee for the disputed differential amount of duty. The appellant had already furnished bank guarantees, out of which a significant amount had been encashed by the Revenue authorities before the Tribunal's order.

2. The Senior Departmental Representative argued that since the appellants had paid a major portion of the duty amount, he did not object to dispensing with the pre-deposit of the balance amount. The Revenue authorities justified the encashment of the bank guarantees based on the direction of the Bombay High Court to keep the bank guarantee alive for a specified period after the appeal's disposal.

3. Upon considering the facts and circumstances, the Tribunal observed that encashment of the bank guarantee before the specified period was premature. The Tribunal decided to dispense with the pre-deposit of the remaining duty amount, as requiring further deposit would cause undue hardship to the appellants. Additionally, the Revenue authorities were directed not to pursue recovery proceedings or encash the remaining bank guarantee during the appeal's pendency.

4. The appellant's counsel requested an out of turn hearing due to the potential multiplicity of proceedings before various authorities. The Senior Departmental Representative did not object to this request. The Tribunal, in the interest of justice, granted the out of turn hearing and scheduled the matter for a hearing on a specific date in January 1995.

In conclusion, the Tribunal allowed the appeal partly by dispensing with the pre-deposit of the remaining duty amount, directing the Revenue authorities to refrain from recovery proceedings, and granting an out of turn hearing to prevent the recurrence of multiple proceedings.