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2013 (9) TMI 622 - AT - CustomsStay petition for redemption fine Held that - stay can be granted against recovery of fine also even though the Section 129E which deals with grant of stay does not specifically mention about redemption fine - court granted waiver of pre-deposit of redemption fine on the goods imported by the assessee and stay recovery court relied upon the judgement of Babubhai Patel & Co. Vs. Collector of Customs, Bombay (1984 (3) TMI 349 - CEGAT, BOMBAY) - appellate authority had the incidental and ancillary power to grant the interim relief asked for the release of imported goods on payment of duty but without payment of fine imposed in lieu of confiscation decided in favour of assessee.
Issues: Stay application for recovery of redemption fine imposed on imported equipments.
In the judgment by the Appellate Tribunal CESTAT MUMBAI, the appellant sought a stay on the recovery of a redemption fine imposed on imported equipments following an order dated 22.1.2010. The appellant was confirmed a duty demand of Rs.86,17,471 along with interest, and the goods were confiscated with an option to redeem them by paying a fine of Rs.45 lakhs. Additionally, penalties were imposed on the appellant, Assistant General Manager, and Vice President of the appellant firm. The Tribunal had earlier waived the pre-deposit of interest and penalty for the appeal hearing based on the appellant's payment of the duty demand. However, the specific issue of staying the recovery of the fine was not raised previously. The appellant's counsel relied on a previous decision by a Larger Bench of the Tribunal in Babubhai Patel & Co. Vs. Collector of Customs, Bombay - 1984 (17) ELT 152 (Tri), where it was held that the Tribunal, as an appellate authority, has the power to grant interim relief for the release of imported goods by paying duty, even without paying the fine imposed for confiscation. Despite Section 129E not explicitly mentioning redemption fine, the Tribunal in the cited case allowed for a stay against the recovery of the fine. Building on this precedent and considering the existing stay on interest and penalty recovery, the Tribunal granted a waiver of pre-deposit of the redemption fine on the imported goods and stayed its recovery during the appeal's pendency.
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