Prima facie absence of export prohibition defeated customs penalty exposure for alleged copyright-abetted book export.

A prima facie challenge to penalties under the Customs Act was accepted where the alleged abetment concerned attempted export of books said to infringe copyright. The Tribunal noted that no clear statutory basis showed that export or attempted export of such books was prohibited under the Copyright Act, and no notification or other provision was identified to support confiscation under the Customs Act on the stated facts. In the absence of an established prohibition, the foundation for confiscation and the connected penalty remained unsubstantiated at the pre-deposit stage, and waiver of pre-deposit and stay of recovery were granted.

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Issues: Whether the appellants made out a prima facie case for waiver of pre-deposit and stay of recovery of penalties imposed under Section 114 of the Customs Act on the allegation of abetment of attempted export of books said to infringe copyright.

Analysis: The penalty was founded on the premise that attempted export of the books constituted an offence under the Copyright Act and rendered the goods liable to confiscation under the Customs Act. The Tribunal found no clear statutory basis showing that export or attempted export of books was prohibited under Section 53 of the Copyright Act or that Section 11 of the Customs Act supported confiscation under Section 113 of the Customs Act in the facts stated. In the absence of any supporting notification or other provision prohibiting such export, the alleged foundation for confiscation and consequent penalty remained unsubstantiated at the prima facie stage.

Conclusion: The appellants established a prima facie case against the penalties, and waiver of pre-deposit and stay of recovery were granted.

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