2006 (3) TMI 407 - AT - Customs

Summary

Issues:
Confiscation of second-hand weaving looms, imposition of penalties, waiver of pre-deposit and stay of recovery.

Confiscation of Second-Hand Weaving Looms:
The case involved the confiscation of five weaving looms imported by M/s. Shri Raam Tex, claimed to be less than ten years old under OGL. However, Customs authorities found discrepancies in the age of the machinery based on inspection, leading to the conclusion that the machinery was over ten years old and prohibited for import. This discrepancy resulted in the order of confiscation and penalty.

Imposition of Penalties:
The lower authorities imposed a penalty of Rs. 2.00 lakhs on M/s. Shri Raam Tex and a personal penalty of Rs. 1.00 lakh on one of the partners, Shri C. Easwaran. The penalties were based on the belief that the imported machinery was more than ten years old, violating import regulations. The confessional statement of Shri C. Easwaran, admitting the machinery was about 25 years old, was a crucial factor in upholding the penalties.

Waiver of Pre-Deposit and Stay of Recovery:
The appellants sought waiver of pre-deposit and stay of recovery for the penalty amounts. The tribunal, after considering submissions, found that the appellants did not establish a prima facie case against the penalties. However, they directed M/s. Shri Raam Tex to pre-deposit 25% of the penalty amount within four weeks, with the possibility of waiver and stay of recovery for the remaining penalty amount and the penalty imposed on Shri C. Easwaran upon compliance.

In conclusion, the judgment addressed the issues of confiscation, penalties, and the request for waiver of pre-deposit and stay of recovery in a detailed manner, considering evidence, confessional statements, legal arguments, and case law precedents to reach a decision regarding the penalties and compliance requirements.