2002 (1) TMI 354 - AT - Central Excise

Summary

Issues:
- Stay applications seeking waiver of pre-deposit of penalty amounts imposed by the Commissioner of Customs.

Analysis:
1. Penalty Imposition and Confiscation: The Commissioner of Customs imposed penalties on the appellants for confiscation of excess packages of leather jackets, goods, and stones intended for export. The penalties were based on the violation of Customs Act provisions, including failure to file the required export manifest. The investigation revealed attempts to load 167 excess packages and intercepting another 30 packages, leading to the penalty imposition.

2. Appellants' Arguments: The appellants sought total waiver of the penalty pre-deposit, arguing that the excess packages were loaded inadvertently without any malicious intent. They claimed that the penalties were excessive and that they deserved leniency due to the circumstances surrounding the incident.

3. Legal Counsel and SDR Positions: The legal counsel for the appellants argued for complete waiver of pre-deposit, emphasizing the lack of evidence supporting malicious intent. In contrast, the SDR supported the correctness of the impugned order, maintaining the validity of the penalties imposed by the Commissioner.

4. Tribunal's Decision: After reviewing the facts and contentions from both parties, the Tribunal found that the penalties were justified based on the Commissioner's detailed reasoning. While acknowledging the lack of evidence of malicious intent, the Tribunal upheld the penalty imposition due to the clear violations of Customs regulations and the attempted clandestine export of goods.

5. Waiver Decision: The Tribunal granted partial relief by allowing waiver of the balance penalty amount for appellant No. 1, considering the amount already paid. However, appellants No. 2 and No. 3 were directed to make specific pre-deposits to secure waiver of the remaining penalty amounts. Non-compliance within the specified period would result in dismissal of their appeals under Section 129E of the Act.

6. Compliance and Reporting: The Tribunal set a deadline for the pre-deposits and scheduled a follow-up hearing for compliance verification and further orders. The decision aimed to balance the enforcement of penalties with the opportunity for appellants to address their liabilities and secure a stay on recovery pending appeal resolution.