Dismissed

Devinder Singh Narang v. Union of India and Ors.

Punjab & Haryana HC29 May 2013CUSAP/1/2013

Case brief

AI extract

What is this about?

Dismissing two custom appeals, the High Court refused to interfere with the Tribunal's order conditioning the appellant's hearing on a ` 50 lacs deposit, relying on Supreme Court principles to balance revenue interest against undue hardship.

What did the court decide?

The appeals were dismissed; the Tribunal's order imposing a ` 50 lacs deposit condition for hearing was upheld.

Devinder Singh Narang Vs Union of India and… — Company and Corporate | Punjab & Haryana HC (2013)

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CUSAP No. 1 of 2013 (O&M)

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-1-

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IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH

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1. CUSAP No. 1 of 2013 (O&M)

Devinder Narang

..... Appellant

Versus

Commissioner of Customs and another

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..... Respondents

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2. CUSAP No. 1 of 2013 (O&M)

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M/s Simran Bright Bar Industries

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..... Appellant

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Versus

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Commissioner of Customs and another

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..... Respondents

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Date of decision: 29.05.2013

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CORAM: HON'BLE MR. JUSTICE SURYA KANT HON'BLE MR. JUSTICE R.P. NAGRATH

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PRESENT: Mr. Rajesh Garg, Advocate for the appellant.

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SURYA KANT, J. (ORAL)

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CM No. 4226-CII of 2013 in CUSAP No. 1 of 2013

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For the reasons mentioned in the application, the same is allowed and delay of 196 days in filing the accompanying appeal is condoned.

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C.M. stands disposed of.

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CUSAP No. 1 of 2013 (O&M) -2-

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CUSAP Nos. 1 and 2 of 2013 (O&M)

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This order shall dispose of two appeals bearing CUSAP Nos. 1 and 2 of 2013 as similar questions of law and facts are involved in the same. For brevity, the facts are being extracted from CUSAP No. 1.

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This Custom Appeal is directed against the order dated 17.1.2012 (Annexure A-1), passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (hereinafter referred to as 'the Tribunal), dismissing the appellant's application to modify its previous order dated 3.6.2011 (Annexure A-2). Vide order dated 3.6.2011, the appellant was directed to deposit 50 lacs as a pre-condition for the hearing of his appeal, in terms of Section 35-F of the Central Excise Act, 1944 (for short 'the Act'), out of the penalty of 3,50,00,000/- which is under challenge in the appeal.

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The Tribunal has observed that the appellant deliberately participated in the fraud of exporting firms, by facilitating the issue of invoices, on commission basis, without the actual issuance of goods.

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The Tribunal has, however, found that prima facie the appeal preferred by the appellant requires consideration and on consideration of the total amount of penalty, the Tribunal has directed the appellant to deposit ` 50 lacs as a pre-condition in terms of Section 35-F of the Act for the hearing of his appeal.

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In the light of principles laid down by Hon'ble Supreme Court in Benera Valves Ltd. Vs. Commissioner of Central Excise, (2006) 13, SCC 347 and Indu Nissan Oxo Chemicals Ind. Ltd Vs. Union of India (UOI) and others, (2007) 13 SCC 487, to draw balance

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CUSAP No. 1 of 2013 (O&M) -3-

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between 'undue hardship' viz.a.viz. the 'interest of the revenue', we are satisfied that the pre-condition of deposit of ` 50 lacs, calls for no interference by this Court.

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For the reasons afore-stated, both the appeals stand

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dismissed.

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( SURYA KANT ) JUDGE May 29, 2013 ( R.P. NAGRATH ) rishu JUDGE

Devinder Singh Narang v. Union of India and Ors.

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Devinder Singh Narang v. Union of India and Ors.

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