2013 (10) TMI 207 - AT - Customs

Imposition of Penalty u/s 1112(a) of Customs Act - Stay application - allegation of improper imports of the goods under invalid licenses Held that - Following M/s. Pravin Bhatt & Sons and M/s. Kandla Clearing Agency Pvt. Ltd. Versus CC Kandla 2013 (8) TMI 617 - CESTAT AHMEDABAD - The case started on the basis of clearance of consignments based on forged/tampered licence - In the absence of the documents which have been relied upon for issuance of show cause notice, the adjudication order does not survive - applicants have made out a case for the waiver of pre-deposit of amounts involved - Applications for the waiver of pre-deposit of amounts involved were allowed Stay Granted.

Summary

Issues involved:
- Application for adjournment
- Imposition of penalties under Section 112(a) of the Customs Act, 1962
- Waiver of pre-deposit of amounts involved
- Jurisdiction of Single Member Bench

Analysis:

Application for adjournment:
The appellant sought an adjournment due to being unable to attend from Kolkata. However, the Tribunal noted repeated requests for adjournment after the condonation of delay was allowed. Consequently, the Tribunal declined the request and proceeded to take up the stay petitions for disposal.

Imposition of penalties under Section 112(a) of the Customs Act, 1962:
The issue revolved around penalties imposed on the appellants for improper imports of goods under invalid licenses. The Tribunal referred to a previous case where it was held that in the absence of documents relied upon for issuing a show cause notice, the adjudication order does not stand. Applying the same principle, the Tribunal found that the appellants had a case for the waiver of pre-deposit of amounts involved. Accordingly, applications for the waiver were allowed, and recovery stayed pending the disposal of appeals.

Waiver of pre-deposit of amounts involved:
Based on the analysis of submissions and records, the Tribunal concluded that the applicants had substantiated their case for the waiver of pre-deposit of amounts involved. The Tribunal allowed the applications for waiver and stayed the recovery of the amounts until the appeals were disposed of.

Jurisdiction of Single Member Bench:
The Tribunal observed that the penalties imposed on the appellants fell within the jurisdiction of the Single Member Bench. Consequently, the registry was directed to list the matters for disposal before the Single Member Bench in due course.

This comprehensive analysis of the judgment highlights the key issues addressed by the Tribunal, including the application for adjournment, imposition of penalties under the Customs Act, waiver of pre-deposit, and the jurisdiction of the Single Member Bench.