2008 (11) TMI 578 - AT - Customs

Stay/Dispensation of pre-deposit - Penalty - Imposition of penalty of Rs. 45 lakhs in connection with confiscation of goods seized

Summary

Issues:
1. Waiver of pre-deposit and stay of recovery in respect of a penalty under Section 112 of the Customs Act, 1962.
2. Penalties imposed on appellants in Appeals No. C/581 & 582/08 under Section 112 of the Customs Act.

Analysis:
1. The judgment addresses the application for waiver of pre-deposit and stay of recovery concerning a penalty of Rs. 45 lakhs imposed on the appellants by the Commissioner under Section 112 of the Customs Act, 1962. The penalty was in connection with the confiscation of 183.310 MTs of vegetable oil seized on a specific date. The Tribunal observed that the sale proceeds of the confiscated goods, amounting to Rs. 59.75 lakhs, were already with the Government, which was deemed sufficient to secure the recovery of the penalty if found sustainable. Consequently, the application for waiver of pre-deposit and stay of recovery was allowed by the Tribunal.

2. In Appeals No. C/581 & 582/08, penalties of Rs. 5 lakhs and Rs. 45 lakhs, respectively, were imposed on the appellants under Section 112 of the Customs Act. The significant penalty was on the company, with a lesser one on its Director. The penalties were associated with the confiscation of goods consigned to the appellants in Appeal No. C/582/08. It was noted that the supplier of the goods intended to take them back when the consignee disowned the goods, and the consignee failed to file a bill of entry for clearing the goods. These undisputed facts led the Tribunal to grant waiver of pre-deposit and stay of recovery concerning the penalties imposed on the appellants in Appeals No. C/581 & 582/08. The Tribunal's decision was based on the circumstances surrounding the confiscation of goods and the actions of the parties involved, ultimately leading to the grant of relief to the appellants.

This detailed analysis of the judgment highlights the Tribunal's considerations and decisions regarding the waiver of pre-deposit and stay of recovery in connection with the penalties imposed under Section 112 of the Customs Act, 1962, emphasizing the specific circumstances and facts of the cases presented before the Tribunal.