2013 (8) TMI 728 - AT - Customs

Waiver of pre deposit of penalties u/s 112(a) Stay petition - Held that - Show cause notice and the earlier round of litigation that the entire case starts on the basis of clearance of consignments based on forged/tampered licence - findings recorded by the adjudicating authority that the forged/tampered licences were not available even at the time of investigations and hence could not be produced before the Bench waiver of pre deposit allowed to the assessee decided in favour of assessee.

Summary

Issues:
Waiver of pre-deposit of penalties under Section 112(a) of Customs Act, 1962 based on forged/tampered licenses for Clearing House Agents.

Analysis:
The judgment by the Appellate Tribunal CESTAT AHMEDABAD involved the consideration of Stay Petitions filed by the appellants seeking the waiver of pre-deposit of penalties imposed under Section 112(a) of the Customs Act, 1962. The penalties amounted to Rs.5 lakhs on the appellant firm, Rs.10 lakhs on the Authorised Signatory, and Rs.5 lakhs on the Manager of the appellant company. The adjudicating authority had imposed these penalties on the grounds that the appellants, who were Clearing House Agents operating at Kandla Port, had facilitated the clearance of consignments based on forged/tampered licenses. The case revolved around the alleged involvement of the appellants in clearing goods using fraudulent means.

Upon hearing both sides and examining the records, the Tribunal noted that the forged/tampered licenses, which formed the basis of the duty liability demanded from the appellants, were not available even during investigations and could not be produced before the Bench. The Tribunal highlighted that the entire case was built on the clearance of consignments using forged/tampered licenses. Given the absence of these crucial documents for the defense of the appellants, the Tribunal concluded that the appellants had made a case for the waiver of pre-deposit of the penalties. The Tribunal emphasized that the appellants needed to defend themselves against the serious charges of involvement in importing goods cleared through fraudulent means.

In light of the above considerations, the Tribunal allowed the applications for the waiver of pre-deposit of the penalty amounts and stayed the recovery thereof until the final disposal of the applications. This decision was crucial in ensuring that the appellants had the opportunity to present their defense effectively in the ongoing legal proceedings related to the alleged customs violations.