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Judgment
Whether the Tribunal was justified in directing the appellants to deposit 15% of the duty confirmed by the order in original is the question raised in these two appeals. The Tribunal in para 17 of its order has recorded that the case of the revenue to the effect that the goods in question have been undervalued and that the thickness of the imported goods has been deliberately withheld from the customs is established from (a) e-mail communication between the foreign supplier and SGS Corporation (another similar importer of identical goods from the same supplier), (b) statement of the Director/partner of the appellants admitting the undervaluation of the goods.
As regards the e-mail communication between the foreign supplier and SGS Corporation is concerned, admittedly the adjudication in the case of SGS Corporation based on the e-mail communication is still in progress and final decision has not yet been taken by the Adjudicating Authority. Therefore, evidentiary value of e-mail communication in the case of SGS Corporation itself is yet to be established.
As regards statement of the Director/partner of the appellants are concerned, it is the case of the appellants that there is no statement admitting undervaluation and in any event the Director/partner of the appellants have retracted the statement. The Tribunal has declined to consider the retraction on the ground that the retraction has not been made before the authority who had recorded their statement. From Exhibits (b) and (c) to the appeal memo it is seen that the retraction letter was in fact addressed to the officer who had recorded the statement.
In these circumstances, the prima facie view of the Tribunal on the basis of which pre-deposit was ordered cannot be sustained.
Accordingly, the impugned order of the tribunal dated 20-6-2011 is quashed and set aside and the Tribunal is directed to hear the appeal on merits without insisting any pre-deposit. Both the appeals are disposed of in above terms with no order as to costs.