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Stay applications for waiver of penalties imposed under the Customs Act due to alleged violations in exporting goods. Analysis: The appellants filed three stay applications seeking waiver of penalties imposed under Section 114 of the Customs Act. The case originated from the export of old garments disguised as readymade garments to claim excess duty drawback. Central Excise Preventive Officers investigated and found discrepancies in the goods exported by the appellants. The containers provided to them contained old, used, and torn clothes instead of the declared items. Additionally, inflated values were assigned to items like watches to benefit from duty drawback. The Commissioner of Customs imposed penalties and ordered confiscation based on violations of various laws. The appellants argued financial hardship and innocence, claiming the seizure was illegal and values were correct. However, the Commissioner's order was upheld as the appellants attempted to export misrepresented goods for financial gain, risking the country's reputation. The Tribunal found no prima facie case for complete penalty waiver due to the appellants' conduct and violations. The Tribunal acknowledged the appellants' financial hardship claims but directed partial pre-deposits to continue their appeals. Appellant No. 1 was directed to deposit Rs. 1 crore out of Rs. 5 crores, Appellant No. 2 to deposit Rs. 75 lakhs out of Rs. 1.75 crores, and Appellant No. 3 to deposit Rs. 50 lakhs out of Rs. 1.25 crores within eight weeks. Failure to comply would result in dismissal of their appeals under Section 129-E of the Customs Act. The Tribunal balanced the interests of revenue with the appellants' circumstances by allowing partial waivers upon specified deposits, ensuring compliance with the legal process.
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