2006 (12) TMI 382 - AT - Customs

Summary

Issues:
1. Requirement of predeposit of penalty.
2. Confiscation of goods under Section 111(d) of the Customs Act.
3. Imposition of penalty without quoting relevant section.
4. Discrepancy regarding the drawal of samples.
5. Expectation of waiting for disposal of goods.
6. Waiver of pre-deposit of penalty till appeal disposal.

Analysis:
1. The appellant was required to predeposit a penalty of Rs. 5,00,000 as per the impugned order. The appellant imported life-saving drugs without samples being drawn, leading to a delay in the test reports. The appellant argued that due to the delay and the limited life of the drugs, waiting for the test reports was unreasonable.

2. The Revenue initiated proceedings against the appellant under Section 111(d) of the Customs Act, holding the goods liable for confiscation. The Adjudicating Authority imposed a penalty without quoting the relevant section of the Act and withdrew the facility for clearing imported goods for storage.

3. The Revenue contended that samples were drawn, but the appellant presented Bills of Entry showing no mention of sample drawal. The appellant had executed a Bond with Customs Authorities but could not be expected to wait indefinitely for goods disposal, especially for life-saving drugs. The Tribunal inclined to waive the pre-deposit of penalty until the appeal's disposal without expressing an opinion on the case's merits.

In conclusion, the Tribunal acknowledged the lapse on the part of Customs Authorities regarding the handling of the imported life-saving drugs. The waiver of the pre-deposit of penalty was granted until the appeal's final disposal, emphasizing the critical nature of the goods and the unreasonable delay in the testing process. The decision was made without prejudice to the case's merits, focusing on the procedural aspects and the appellant's circumstances.