2015 (12) TMI 718 - AT - Customs

Waiver of pre deposit - Confiscation of goods - Importer - speed post parcel - The contents of the said parcel were declared as Food . However on opening, the same was found to be containing steroids/stimulants primarily used for strengthening the muscle mass. - Held that - apart from the address given on the parcel, there is absolutely no other evidence to connect the appellant with the imported goods. The appellant in his first statement recorded during investigation had clearly deposed that he was not, in any way, connected with the said parcel and does not know why somebody has used his name and address. In the absence of any corroborative evidence to show that the appellant was the real person for whom parcel in question was meant for, we find that imposition of penalty upon him on the basis of doubt is not, prima facie, justifiable. We accordingly, dispense with the condition of pre-deposit and stay the recovery of the same during the pendency of the appeal. - Stay granted.

Summary

Issues:
1. Request to dispense with the pre-deposit of penalty imposed under Sections 112 and 117 of the Customs Act, 1962.

Analysis:
The judgment in the case involved a prayer to waive the pre-deposit condition of penalties amounting to Rs. 15 lakhs under Section 112 and Rs. 1 lakh under Section 117 of the Customs Act, 1962. The appellant was found in possession of a parcel containing steroids/stimulants, which were declared as "Food" on the label. The appellant denied any involvement in importing the parcel and claimed that his name and address were misused. The adjudicating authority rejected this plea, confiscating the goods and imposing penalties. However, the Tribunal noted that there was no substantial evidence linking the appellant to the imported goods beyond the address on the parcel. The appellant's initial statement during investigation also indicated his lack of connection to the parcel. As a result, the Tribunal found the imposition of penalties based on doubt unjustifiable and decided to dispense with the pre-deposit condition, staying the recovery during the appeal process.

This judgment highlights the importance of substantial evidence in imposing penalties under the Customs Act. It emphasizes the need for a clear connection between the individual and the imported goods to justify penalties. The Tribunal's decision to waive the pre-deposit condition during the appeal process showcases a fair and just approach to resolving legal disputes, especially when doubts exist regarding the involvement of the appellant.