1999 (3) TMI 205 - AT - Central Excise

Summary

Issues involved:
Application for dispensation with pre-deposit of penalty amount and staying recovery during appeal.

Analysis:
The applicant sought dispensation with the pre-deposit of a penalty amount and staying the recovery during the appeal process. The applicant's advocate argued that the applicant was not connected to the seized goods found in another passenger's baggage. It was highlighted that the impugned order was passed ex parte without giving the applicant a chance to be heard. The advocate emphasized the lack of evidence linking the applicant to the seized items. On the contrary, the Revenue representative contended that the penalty was rightfully imposed on the applicant.

Upon considering the arguments from both sides, the Tribunal found merit in the applicant's pleas. Consequently, the Stay Petition was unconditionally allowed, and the decision was announced in an open court session. The Vice President observed the findings of the Commissioner, Customs, which implicated other individuals but not the applicant directly. The Commissioner had confiscated the seized items and imposed a penalty on another individual involved. However, the order was deemed unusual and lacking in detailed reasoning, especially regarding the heavy penalty and absolute confiscation.

The Tribunal noted that the goods were already in the custody of the Department, safeguarding the revenue's interest. Considering the circumstances and the lack of substantial evidence against the applicant, the Tribunal granted the applicant's request for waiving the pre-deposit of the penalty amount and staying its recovery during the appeal process. The decision was made based on the totality of facts and the specific aspects highlighted during the proceedings.