2016 (12) TMI 888 - AT - Customs

Pre-deposit - smuggling racket - opportunity of being heard not provided - Held that - We have passed above order being guided by the ratio of the Apex Court in the case of Benera Valves Ltd. Vs. Commr. of Central Excise 2006 (11) TMI 6 - SUPREME COURT OF INDIA and also appreciating that Revenue deserves protection. We expect that no undue hardship shall be caused to appellants by this order when gravity of the matter as above is looked into - Compliance is directed for 6th of October, 2016.

Summary

Issues:
1. Stay applications for pre-deposit in smuggling case involving CODEINE drug formulation.
2. Role and penalties imposed on individual appellants in smuggling activity.
3. Absence of appellants leading to a directive for deposit.

Analysis:
1. The Tribunal addressed the stay applications concerning pre-deposit in a smuggling case involving CODEINE drug formulation. The Revenue contended that the appellants were part of a team involved in smuggling activities, supported by evidence under Customs Act, 1962. The goods in question were covered by relevant notifications. The Tribunal found a prima facie case in favor of the Revenue regarding abatement of smuggling by the appellants. The absence of the appellants on the hearing date led to the consideration of their pre-deposit applications.

2. The Tribunal discussed the individual roles of the appellants in the smuggling activity. Shri Rabi Shankar Jaiswal was found to be consciously involved in smuggling and was penalized under Section 114 of the Customs Act, 1962. Similarly, Shri Monoj Kumar Jaiswal was identified as an abettor and penalized for his conscious knowledge in the smuggling operation. Shri Shiv Kumar Jaiswal was implicated as an active abettor based on mobile call details and ATM transactions, facing a penalty under the Customs Act, 1962.

3. Considering the questionable conduct and active roles of the appellants in the smuggling racket, the Tribunal directed them to deposit a specified amount within a given timeframe. The Tribunal highlighted the previous pre-deposit direction against another individual involved in the case, emphasizing the need for compliance to avoid jeopardizing the Revenue's interests. The order was passed in line with relevant legal precedents and to ensure that no undue hardship was caused to the appellants. The compliance deadline was set to maintain the integrity of the legal process.

This detailed analysis covers the issues related to the stay applications, individual roles in the smuggling case, and the directive for deposit, providing a comprehensive understanding of the Tribunal's judgment.