2001 (2) TMI 492 - AT - Central Excise

Summary

Issues: Application for waiver of pre-deposit of penalty amounting to Rs. 5 lakhs imposed by the Commissioner of Customs (EP), Mumbai.

Analysis:
1. Issue of Imposition of Penalty: The appellant, through their advocate, argued that the penalty was imposed due to old and used goods found in the consignment, claiming to have been misled by others. The advocate cited a Supreme Court decision emphasizing the need to establish mens rea for imposing penalties. The appellant's financial hardship was also highlighted, mentioning a small business generating a modest income.

2. Opposition to Waiver: The respondent, represented by the learned SDR, contested the waiver request, pointing out that the penalty was imposed under Section 114(iii) of the Act, indicating the goods were liable for confiscation. The respondent disputed the claim of being cheated, emphasizing that the Commissioner had not fully accepted the plea. Reference was made to another Supreme Court decision regarding compliance with statutes without the need to establish mens rea. The respondent also questioned the appellant's financial situation, highlighting substantial orders and claims made by the appellant.

3. Judgment and Decision: The Tribunal considered both arguments and noted the discrepancy in the consignment contents. It was observed that the Commissioner did not fully accept the appellant's claim of being misled, using cautious language in the decision. Consequently, the Tribunal found the appellant had not established a strong prima facie case for a full waiver of the penalty amount. A partial deposit of Rs. 1 lakh was directed to be made within a specified time frame, with the remaining penalty amount subject to waiver upon compliance. Failure to adhere to the directive would lead to the dismissal of the appeal without further notice, with a compliance reporting date set for a future hearing.