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Issues Involved:
Penalty under Section 114(i) of the Customs Act based on goods liable to confiscation under Section 113 after export. Analysis: The case involved a penalty of Rs. 1.00 lakh on the appellants under Section 114(i) of the Customs Act, based on the finding that certain goods exported under 10 shipping bills were liable to confiscation under Section 113 of the Act. The appellant contended that the goods were not liable to confiscation under Section 113. The Tribunal considered the submissions and relevant provisions of law. It was noted that Section 113 pertains to confiscation of goods attempted to be illegally exported, which cannot be invoked for goods already exported. Therefore, the order of confiscation was deemed legally flawed. Consequently, the penalty imposed on the appellants, linked to the confiscation order under Section 113, was also considered invalid. As the appellants established a strong prima facie case, the Tribunal allowed the waiver of pre-deposit and stay of recovery as requested. In conclusion, the Tribunal found that the confiscation order was legally unsustainable as it was based on goods already exported, rendering the penalty imposed on the appellants invalid. The decision was made after a thorough examination of the law and submissions made by both parties. The waiver of pre-deposit and stay of recovery was granted due to the appellants' strong prima facie case regarding the goods not being liable to confiscation under Section 113. The judgment highlights the importance of ensuring legal validity in confiscation orders and penalties under the Customs Act to prevent unjust outcomes for the parties involved.
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