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Stay application for complete waiver of pre-deposit of penalty amount under Section 112 of the Customs Act. Analysis: The appellant sought complete waiver of pre-deposit of penalty amount, arguing a strong prima facie case and financial hardship. The impugned order imposed a penalty of Rs. 5 lakhs under Section 112 of the Customs Act. The Commissioner initiated proceedings against multiple entities for violating Sections 111(d) and 111(m) of the Act, related to illegal importation and installation of equipment for unauthorized international connections. The appellant, a Managing Director, facilitated these activities by providing space and seeking software development contracts. Despite claiming immunity under Section 60 of the FERA, the genuineness of the letter was questioned. The Tribunal found no strong prima facie case in favor of the appellant due to his involvement in illegal activities and subsequent cooperation as an approver. The Tribunal noted that the appellant's conduct, including entering into illegal contracts and facilitating illegal imports, did not warrant waiver of the penalty pre-deposit. The Commissioner's order detailing the appellant's role and violations was deemed lawful. The Tribunal emphasized that the appellant's actions, from aiding illegal activities to seeking personal gain and later cooperating with authorities, did not support his request for waiver. Consequently, the Tribunal directed the appellant to make a pre-deposit of Rs. 5 lakhs within 8 weeks, warning of appeal dismissal for non-compliance under Section 129E of the Customs Act. In conclusion, the Tribunal denied the appellant's request for complete waiver of the penalty pre-deposit, citing the lack of a strong prima facie case and the appellant's involvement in facilitating illegal activities. The decision emphasized the importance of upholding the penalty amount and set a deadline for compliance, highlighting the consequences of non-compliance under the Customs Act.
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