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Issues:
1. Penalty imposed under Section 114A of the Customs Act. 2. Waiver of pre-deposit and stay of recovery of penalty amount. Analysis: 1. Penalty Imposed under Section 114A of the Customs Act: The judgment deals with a case where a penalty of Rs. 13,59,317/- was imposed on the appellants under Section 114A of the Customs Act. The order notes that a total demand of duty and interest amounting to Rs. 54,37,268/- was already voluntarily deposited by the party before the issuance of the relevant show cause notice. The appellants sought waiver of pre-deposit and stay of recovery specifically concerning the penalty amount. The counsel for the appellants relied on a Larger Bench decision of the Tribunal to argue that the issue of penalty imposition under Section 11AC of the Central Excise Act, when duty is paid voluntarily before the show cause notice, has been settled. The counsel contended that the principles of this decision are applicable to penalties imposed under Section 114A of the Customs Act in similar circumstances. The Tribunal, after hearing the arguments, was convinced by the counsel's submission and held that the appellants had a strong prima facie case regarding the penalty under Section 114A. Therefore, the Tribunal waived the pre-deposit and allowed the stay of recovery of the penalty amount based on the principles established in the Larger Bench decision. 2. Waiver of Pre-deposit and Stay of Recovery of Penalty Amount: The appellants sought relief in the form of waiver of pre-deposit and stay of recovery specifically concerning the penalty amount imposed under Section 114A of the Customs Act. The counsel for the appellants presented a strong prima facie case based on the decisions of the Tribunal, particularly referencing a Larger Bench decision that addressed a similar issue under Section 11AC of the Central Excise Act. The counsel successfully argued that the principles established in the Larger Bench decision were equally applicable to penalties imposed under Section 114A of the Customs Act in cases where duty was paid voluntarily before the issuance of a show cause notice. The Tribunal, after considering the submissions, agreed with the counsel's interpretation and granted the waiver of pre-deposit and stay of recovery for the penalty amount, acknowledging the strong prima facie case presented by the appellants. This judgment showcases the application of legal precedents and principles to determine the imposition of penalties under specific sections of the Customs Act, emphasizing the importance of voluntary duty payment before the issuance of show cause notices in penalty assessments.
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