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Issues:
- Stay petitions for waiver of pre-deposit of penalty under Section 114(i) of Customs Act, 1962 post-acquittal by Special Judge for Economic Offence. Analysis: The case involved three stay petitions seeking waiver of pre-deposit of penalties of Rs. 2 lakhs each imposed under Section 114(i) of the Customs Act, 1962. The applicants were acquitted by the Special Judge for Economic Offence, Hyderabad. The counsel for the applicants argued that the acquittal establishes a prima facie case for the waiver of pre-deposit of penalties. On the contrary, the Departmental Representative contended that the acquittal does not affect the penalty imposed under Section 113 of the Customs Act, as it pertains to abetment of an act rendering goods liable for confiscation. The issue of acquittal and penalty imposition were argued to be independent matters. Upon reviewing the findings of the Special Judge for Economic Offence, which specifically acquitted the applicants for certain offences under the Customs Act, the Tribunal noted that the appellants were penalized under Section 114(i) of the Customs Act, 1962. Considering the acquittal by the Special Judge for the specific offence indicated in the order, the Tribunal concluded that the appellants had established a case for the waiver of pre-deposit of penalties imposed by the adjudicating authority. Consequently, the application for waiver of pre-deposit of penalties was allowed, and the recovery was stayed pending the disposal of the appeals. This judgment highlights the significance of the acquittal by the Special Judge for Economic Offence in relation to the penalty imposed under the Customs Act. It underscores the distinction between criminal prosecution and penalty imposition under customs laws, emphasizing that an acquittal in criminal proceedings can impact the imposition of penalties. The decision showcases the Tribunal's consideration of legal principles and specific findings to grant relief in the form of a waiver of pre-deposit of penalties based on the acquittal by the Special Judge.
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