9911796707
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Issues:
1. Confiscation of goods and imposition of penalty under Customs Act, 1962. 2. Non-compliance with deposit requirements for appeal. 3. Discretion of appellate authority in dispensing with penalty deposit. 4. Reasonableness of penalty and right to be heard. 5. Nature of the order - speaking or non-speaking. Analysis: 1. The case involved the confiscation of sarees and fabrics valued at about &8377; 32,000 from the premises of the appellant. The Deputy Collector of Customs and Central Excise adjudicated the case, confiscating the goods under Section 111 of the Customs Act, 1962, and imposing a penalty of &8377; 50,000 under Section 112. The appeal was rejected for non-compliance with deposit requirements by the Appellate Collector, leading to the filing of a Revision Application before the Tribunal. 2. The Counsel for the appellant argued that they had communicated their inability to pay the penalty due to financial constraints and requested a hearing before the appeal was rejected. The Counsel contended that the imposition of an unreasonably high penalty and dismissal of the appeal for non-deposit deprived them of their right to appeal. It was also argued that the order was a non-speaking order, lacking proper justification. 3. The Senior Departmental Representative highlighted that the appellate authority has the discretion, under Rule 129, to dispense with the penalty deposit if it causes undue hardship to the appellant. The use of subjective terms like 'opinion' and 'discretion' allows the authority to consider the circumstances of the case. In this instance, the deposit amount being 50% of the penalty indicated a non-arbitrary decision. However, it was suggested that reasons should be provided if evidence of financial inability was not fully accepted or if a personal hearing was not granted. 4. The Tribunal acknowledged the high penalty in relation to the value of the goods and agreed that it should not be extortionate. While refraining from delving into the merits of the case, the Tribunal remitted the matter back to the Appellate Collector. The direction was given for the Appellate Collector to grant a hearing to the appellant regarding the deposit and to dispose of the appeal in accordance with the law, emphasizing the importance of procedural fairness and the right to be heard. 5. The Tribunal's decision to remit the case back to the Appellate Collector for a proper hearing and disposal of the appeal upheld the principles of natural justice and fairness in adjudicating customs matters, ensuring that the appellant's rights were respected and due process was followed.
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