2019 (4) TMI 2093 - HC - Customs

Seeking maintaining/hearing of the appeal without insistence on the requirement of pre-deposit of penalty - HELD THAT - Having regard to the financial condition of the petitioner as well as the subsequent development by which the penalty imposed upon the Customs House Agent was set aside, the petitioner s claim for relief is reasonable and ought to be granted. In these circumstances, if the petitioner prefers an appeal within four weeks from today, the CESTAT shall proceed to hear it on its merits uninfluenced on the question of limitation and without requiring pre-deposit of any amount in the facts and circumstances of the case. Petition allowed.

Summary

Issues:
1. Petitioner seeking direction for appeal against Order-in-Original without pre-deposit of penalty.
2. Petitioner's employment status and financial circumstances.
3. Previous appeal by the proprietor of Customs House Agent and subsequent development.
4. Court's decision on granting relief to the petitioner for appeal without pre-deposit.

Analysis:
1. The petitioner requested the court to allow the appeal against the Order-in-Original without the need for pre-deposit of the penalty amounting to Rs. 3 crores imposed by the Commissioner (Customs). The petitioner argued being an employee of the Customs House Agent and presented evidence of financial constraints, including bank account details and lease deed of residence.

2. The petitioner clarified being an employee of M/s. Continental Cargo Services, emphasizing Mr. Bhupinder Singh as the proprietor. The adjudication leading to the penalty was based on statements recorded under Section 108 of the Customs Act. The petitioner's financial situation was supported by various documents, prompting the court to consider the circumstances.

3. The court acknowledged the petitioner's financial condition and the previous successful appeal by Mr. Bhupinder Singh, the proprietor of M/s. Continental Cargo Services, at CESTAT. Considering these factors, the court found the petitioner's claim for relief reasonable and decided to grant the appeal without pre-deposit of any amount, directing CESTAT to hear the appeal on its merits within four weeks.

4. In the final decision, the court allowed the writ petition in favor of the petitioner, granting relief by permitting the appeal without pre-deposit of the penalty amount. The court emphasized that the appeal should proceed without being influenced by limitations and reserved all rights and contentions of the parties for future proceedings.