2016 (1) TMI 94 - AT - Customs

Waiver of pre deposit - Confiscation of goods - Imposition of fine and penalty - Held that - Same cannot be imposed when the goods are not available for the confiscation. As regards the penalty, we find from the records that the appeal was dismissed by the Tribunal vide Order no. A/840/14/CSTB/C-I dt. 29/4/2014 on account of delay in filing the appeal. However, the same was restored by the Hon ble High Court of Mumbai 2015 (11) TMI 686 - BOMBAY HIGH COURT -. As the appeal has been restored after the amendment of Section 129E in August 2014, we direct the appellants to pay 7.5% of the penalty i.e of ₹ 7,500/- within two weeks from the date of this order in compliance to the provisions of section 129E of the Customs Act. On compliance being reported the remaining amount of penalty is waived and its recovery stayed till disposal of the appeal - Partial stay granted.

Summary

The stay application was filed to stay the Commissioner's order on product classification. Goods were liable for confiscation, with a fine of Rs. 10,00,000 imposed. A penalty of Rs. 1,00,000 was also imposed. The fine cannot be imposed if goods are not available for confiscation. The penalty was initially dismissed due to appeal delay but restored by the High Court. Appellants directed to pay 7.5% of penalty within two weeks, with the remaining amount waived pending appeal disposal. Compliance to be reported on 10.08.2015.