Pre-deposit relief in customs penalty appeals turned on conscious knowledge and the relative role of the agent and clerk.

Pre-deposit of customs penalty was waived for the customs house agent because the record did not show conscious knowledge of the alleged fraud and the balance of convenience favoured relief. For the clerk, the record indicated conscious knowledge, but his role justified only a nominal pre-deposit rather than payment of the full penalty, with stay granted for the balance during appeal. The commentary therefore turns on the differing factual positions of the agent and the clerk and the resulting approach to pre-deposit relief in customs penalty appeals.

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Issues: Whether pre-deposit of the penalties imposed on the customs house agent and his clerk should be waived pending appeal.

Analysis: The statements on record did not indicate conscious knowledge of the alleged fraud on the part of the customs house agent, and the balance of convenience favoured waiver of the pre-deposit requirement for it. As regards the clerk, the record reflected conscious knowledge, but his status as a clerk justified only a nominal pre-deposit instead of the full penalty amount.

Outcome: Pre-deposit of the penalty imposed on the customs house agent was waived. The clerk was directed to deposit a nominal amount, with stay of the balance penalty during the appeal.

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