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Issues:
1. Dispensing with the condition of pre-deposit of penalty imposed on individuals. 2. Imposition of penalty based on high sea sale and disposal of goods in the open market. 3. Lack of independent evidence against the appellant. Analysis: 1. The case involved a prayer to dispense with the condition of pre-deposit of penalties imposed on individuals related to a high sea sale transaction. The original adjudicating authority confirmed a demand of Rs. 3 crores against a company for diverting imported goods in the open market. The penalties of Rs. 50 lakhs and Rs. 25 lakhs were imposed on the director and an employee of the company, respectively. The appellant argued that the penalties were unjust as the goods were sold to another entity without receiving the full sale proceeds. The Tribunal noted discrepancies in the issuance of show cause notices and the lack of evidence directly implicating the appellant in the disposal of goods. 2. The Tribunal observed that the high sea sale was used as a pretext to pass on the goods to another entity, which subsequently sold them in the open market. However, the statements of the co-accused formed the basis of the impugned order, with no independent evidence supporting the appellant's involvement. Notably, statements made by the co-accused after the issuance of show cause notices implicated the appellant, while earlier statements did not attribute any role to the appellant in the transaction. The Tribunal highlighted the importance of independent evidence and the lack thereof in establishing the appellant's culpability in the disposal of goods. 3. Considering the lack of substantial evidence against the appellant and the discrepancies in the case, the Tribunal found that the appellants had a prima facie good case in their favor. Consequently, the Tribunal decided to allow the stay petition unconditionally and scheduled the appeal for final disposal on a specific date. The decision was made based on the assessment that the appellants had a strong case warranting further consideration and examination during the final disposal of the appeal. This detailed analysis of the judgment highlights the key issues addressed by the Appellate Tribunal CESTAT, Ahmedabad, regarding the dispensation of penalties, high sea sale transactions, and the importance of independent evidence in legal proceedings.
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