1987 (6) TMI 157 - AT - Customs

Summary

Issues:
1. Confiscation of torque wrenches under Section 111(d) of the Customs Act, 1962.
2. Imposition of a personal penalty of Rs. 25,000.
3. Application for waiving the condition of pre-deposit of penalty under Section 129E of the Customs Act.
4. Stay order on the impugned order.
5. Special Leave Petition filed in the Supreme Court.
6. Compliance with the order to deposit penalty.
7. Dismissal of the appeal for failure to comply with the order.

Analysis:
1. The judgment pertains to the confiscation of torque wrenches under Section 111(d) of the Customs Act, 1962, imported without a valid license. The Additional Collector ordered confiscation but allowed redemption on payment of a fine and imposed a personal penalty of Rs. 25,000. The appellants appealed against this decision.

2. The appellants moved an application to waive the pre-deposit condition of the penalty under Section 129E of the Customs Act. The Tribunal directed the appellants to deposit the penalty amount within four weeks. The appellants failed to comply with this order, leading to dismissal of the appeal.

3. The appellants sought a stay order on the impugned order, claiming release of goods based on a bank guarantee furnished earlier. However, the respondent contested this, stating no such direction was issued by the High Court. The Tribunal found no grounds for a stay order and dismissed the application for abeyance.

4. The appellants mentioned a Special Leave Petition filed in the Supreme Court, but no stay order was issued. The absence of a stay order meant the Tribunal's order to deposit the penalty amount stood, and failure to comply led to the dismissal of the appeal.

5. The Tribunal emphasized the importance of complying with orders, citing the legal effect of Section 129E of the Customs Act. Non-compliance with deposit requirements can lead to rejection of appeals, as clarified in previous legal precedents.

6. Ultimately, due to the appellants' failure to deposit the penalty amount as directed by the Tribunal, the appeal was dismissed under the proviso to Section 129E of the Customs Act. The dismissal was attributed to the appellants' default in meeting the order's requirements.

7. The judgment concluded with the dismissal of the appeal based on the appellants' non-compliance with the Tribunal's order to deposit the penalty amount within the specified timeframe, highlighting the significance of adhering to legal directives in customs matters.