2009 (9) TMI 754 - AT - Customs

Summary

Issues involved: Application for waiver of pre-deposit and stay of recovery for penalties imposed under Section 112(a) of the Customs Act on abetment of offence committed by M/s. Amba Expofab and their proprietor.

Summary:
1. The penalties were imposed on individuals for abetting the offence committed by M/s. Amba Expofab in relation to duty-free goods imported under Advance Licences. The main party's applications were adjourned.
2. The penalties were imposed based on investigations revealing diversion of goods to the domestic market, leading to show cause notices and penalties.
3. The CHA's claim regarding suspension of licences and lack of confiscation or penalty under Section 112 was contested, and a pre-deposit was ordered.
4. The Chartered Accountant's liability for abetment was established based on issuing a solvency certificate facilitating duty-free import and diversion of goods, warranting a pre-deposit.
5. Shri Harbhajan Singh Sandhu was entitled to waiver of pre-deposit and stay of recovery due to lack of inculpatory statements and denial of cross-examination.
6. Shri Manoj Omprakash Goel's involvement in diverting goods to the domestic market was detailed in his statement, leading to a penalty under Section 112(a) upheld by the Tribunal.
7. Financial hardships were not pleaded, and pre-deposit amounts were specified for the appellants with compliance deadlines set.

Separate Judgement:
- Shri Harbhajan Singh Sandhu was granted waiver of pre-deposit and stay of recovery due to lack of inculpatory statements and denial of cross-examination.