2001 (7) TMI 786 - AT - Central Excise

Summary

Issues:
Waiver of pre-deposit of penalty amount imposed by the Commissioner of Customs under Section 114 of the Customs Act.

Analysis:
The appellant filed an application seeking waiver of pre-deposit of a penalty of Rs. 1 lakh imposed on him by the Commissioner of Customs. The Commissioner found the appellant involved in an attempted illegal export of 'BOPP adhesive tapes in scrap' under the DEEC scheme by misdeclaring the goods and their value. The appellant was alleged to have introduced a Custom House Agent (CHA) and facilitated the export, aiming to share the benefits of the illegal export. The adjudicating authority upheld these allegations and imposed the penalty on the appellant under Section 114 of the Customs Act.

The appellant's counsel argued that there was no evidence supporting the Commissioner's finding that the appellant had an interest in sharing the benefits of the export. The counsel highlighted inconsistencies in the statements of the co-noticees and emphasized the lack of opportunity for cross-examining a key witness. The counsel also contended that the Commissioner did not consider various contentions raised by the appellant and that the order was not a speaking order. Additionally, the appellant's financial condition was presented as a reason for the inability to make any pre-deposit.

The Judicial Member examined the submissions and found that the statement made by a co-noticee before Customs Officers was not retracted, and the veracity of the statement was not questioned by the appellant. The appellant's own statement to the officers revealed his awareness and involvement in the attempted export. The Judicial Member concluded that the appellant failed to establish a strong case for the waiver of pre-deposit. The Judicial Member directed the appellant to deposit 25% of the penalty amount within six weeks for the appeal to be heard on its merits.

In conclusion, the Tribunal upheld the imposition of the penalty on the appellant, emphasizing the lack of evidence to support financial hardships and the appellant's active involvement in the attempted illegal export. The Tribunal directed the appellant to make a partial deposit of the penalty amount for the appeal to proceed.