2012 (11) TMI 267 - AT - Customs

Waiver of Penalty - Held that - Applicant who was Superintendent of Central Excise gave a false certificate that the goods in question were stuffed in his presence. The evidence on record to show that containers were not at the given place at the time when the applicant gave certificate in respect of the goods export. The exports were made on the basis of certificate given by the applicant, and the exporters were entitled for the export benefit of approximately Rs. 4 Crores (Rupees four crores only). Therefore, prima facie it is not a case for total waiver - taking into consideration the facts and circumstances of the case and the financial hardship as pleaded, the applicant is directed to deposit Rs.50,000/- (Rupees fifty thousand only) within eight weeks. On deposit of the above mentioned amount, pre-deposit of the remaining amount of penalty is waived and recovery of the same is stayed during the pendency of the appeal.

Summary

Issues:
1. Waiver of penalty under Section 114(i) of the Customs Act for giving a false certificate regarding export goods.

Analysis:
The appellant, a retired Central Excise Superintendent, sought waiver of a penalty of Rs.25,00,000 imposed under Section 114(i) of the Customs Act. The Revenue alleged that the appellant certified that goods were stuffed in containers and exported, leading to a claim of export benefit of approximately Rs.4 Crores. However, investigations revealed discrepancies as the containers were not found at the certified location. It was disclosed that Central Excise documents were fabricated with the appellant's help, leading to the imposition of penalties. The appellant argued financial hardship due to retirement and pending departmental proceedings. The Revenue contended that the appellant gave false certificates, making him liable for penalties.

The Tribunal found that the appellant indeed gave a false certificate regarding the stuffing of goods in containers, which were not present at the certified location during export. This act enabled exporters to claim benefits worth Rs. 4 Crores. While the case did not warrant total waiver of penalty, considering the circumstances and financial hardship claimed by the appellant, a partial waiver was granted. The appellant was directed to deposit Rs.50,000 within eight weeks, with the remaining penalty amount being waived upon compliance. Recovery of the penalty was stayed during the appeal's pendency, with a compliance report due on 03.12.2012.