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Issues involved: Imposition of fine and penalty for delayed export of containers under Notification No. 104/94-Cus., applicability of Sections 112 and 117 of the Customs Act, waiver of pre-deposit and stay of recovery.
Imposition of fine and penalty: The Commissioner imposed a fine of Rs. 10 lakhs and a penalty of Rs. 5 lakhs on the appellant for delaying the export of containers beyond the prescribed six months under Notification No. 104/94-Cus. The penalty was imposed under Section 112 of the Customs Act, although the show-cause notice proposed penalty under "Section 112/Section 117". The appellant sought waiver of pre-deposit and stay of recovery, citing the Supreme Court's judgment in Hindustan Steel Ltd. v. State of Orissa 1978 (2) E.L.T. (J159) which emphasized against imposing penalties for technical breaches. However, the Revenue relied on the decision in Weston Components Ltd. v. Commissioner of Customs, New Delhi, 2000 (115) E.L.T. 278 (S.C.) stating that subsequent release of goods does not prevent Customs authorities from imposing fines under Section 125 of the Customs Act. Interpretation of Notification No. 104/94-Cus: The Notification exempted durable containers from duty subject to the condition that the importer re-export them within six months and furnish evidence to the Assistant Collector/Assistant Commissioner. The Notification allowed for extension of this period at the discretion of the Assistant Collector/Assistant Commissioner upon application by the importer. In this case, the appellant did not apply for an extension and re-exported the containers with delays, disregarding the mandatory provisions. As a result, the Tribunal directed the appellant to pre-deposit Rs. 1 lakh under Section 129E of the Act within four weeks, with a waiver of pre-deposit for the remaining penalty amount and a stay on recovery if compliance is reported by a specified date.
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