2003 (10) TMI 485 - AT - Customs

Summary

Issues:
1. Interpretation of Section 113(i) of the Customs Act regarding confiscation of goods.
2. Consideration of financial hardship as a factor in waiving pre-deposit of penalties.
3. Determination of whether loading goods for onward transmission constitutes an attempt to export under Section 113(i).

Analysis:
1. The case involved an appeal against the order of the Commissioner of Customs, Mumbai, confiscating cotton knitted T-shirts under Section 113(i) of the Customs Act and imposing fines and penalties. The Tribunal initially directed a 50% pre-deposit of penalties, which was challenged in the High Court and remanded back to the Tribunal for fresh hearing.

2. The appellant argued that Section 113(i) was not applicable as the goods were intercepted before export and were intended for transportation to Calcutta, not for export. The appellant also raised financial hardship as a ground for waiving the pre-deposit of penalties, but failed to provide sufficient evidence to support this claim.

3. The respondent contended that evidence of booking a container and non-cancellation of shipping bills indicated an attempt to export the goods, thus invoking Section 113(i). However, the Tribunal found that loading the goods for onward transmission was preparatory and did not constitute an actual attempt to export, leading to the waiver of pre-deposit and a stay on penalty recovery pending appeals.