2013 (11) TMI 633 - AT - Customs

Stay application - Transfer of fake DEPB licenses - Held that - There is no dispute in the transaction of the fake DEPB licences. applicant failed to make out a prima facie case for waiver of the entire amount. After considering the facts and circumstances of the case, the applicant is directed to make a pre deposit - Stay granted partly.

Summary

Issues Involved:
Common issue of fake DEPB licenses transfer and imposition of penalty.

Analysis:
The judgment by the Appellate Tribunal CESTAT Chennai involved multiple stay applications related to the transfer of fake Duty Entitlement Passbook (DEPB) licenses. The applicant, acting as a broker, was alleged to have transferred these fake licenses to another party, resulting in a penalty of Rs. 8 lakhs imposed by the original authority in each case. The applicant claimed innocence, stating they had no knowledge of the fake licenses and were merely following regular business practices. It was noted that the show-cause notice did not specifically mention this allegation. The applicant did admit to receiving a commission of 0.5% per transaction.

During the investigation, it was confirmed that the Telegraphic Release Advice (TRAs) and DEPB licenses were indeed in the names of other individuals, supporting the claim of fake transactions. The tribunal, after hearing both sides, acknowledged the absence of dispute regarding the fake DEPB license transactions. However, the issue of the applicant's knowledge or lack thereof was deemed relevant for the main appeals hearing. Consequently, the tribunal ruled that the applicant had not established a prima facie case for the complete waiver of the penalty amount. As a result, the applicant was directed to deposit Rs. 2,00,000/- (Rupees two lakhs) in each case within six weeks for each application.

The judgment concluded with a directive for compliance reporting by a specified date, emphasizing the need for the applicant to adhere to the deposit requirement within the stipulated timeframe.