2013 (10) TMI 676 - AT - Customs

Fraudulent export - export of red sanders in the name of Readymade garments - waiver of pre deposit - Held that - case was made out mainly on the basis of the statement and it is noted that the applicant admitted his involvement in his statement during the investigation. Hence the applicant has not made out a prima facie case for waiver of entire amount of penalty. After considering the financial hardship as stated by the learned counsel, we direct the applicant to pre-deposit a further sum of Rs.50,000 within a period of eight weeks and report compliance on 6.9.2013. Upon such deposit, pre-deposit of the balance amount of penalty shall stand waived and recovery thereof stayed during the pendency of the appeal - stay granted partly.

Summary

Issues: Application for waiver of pre-deposit of penalty of Rs.7 lakhs

Analysis:
The applicant filed an application seeking a waiver of pre-deposit of penalty amounting to Rs.7 lakhs. The case revolved around the interception of a container by DRI officers, which was declared to contain readymade garments but was found to actually contain red sanders upon investigation. It was established that the applicant played a significant role in the illicit smuggling of red sanders disguised as readymade garments. The applicant's counsel argued that the adjudicating authority did not consider crucial evidence, such as medical documents proving the applicant's absence due to his wife's illness, and that the case was primarily built on statements obtained from other individuals. On the contrary, the Department contended that the applicant was identified as the mastermind by individuals involved in the smuggling operation and had confessed to his involvement during the investigation. The Tribunal noted that the case heavily relied on the applicant's statement admitting his involvement. Despite the financial hardship claimed by the applicant, the Tribunal directed him to pre-deposit a further sum of Rs.50,000 within eight weeks, with the balance of the penalty amount being waived upon compliance, and recovery stayed during the appeal process.