Appellate tribunal waives penalty, citing lack of evidence linking appellant to contraband export.

The appellate tribunal waived the pre-deposit of a penalty of Rs. 1,00,00,000/- imposed on the appellant under Section 114 of the Customs Act, 1962. The tribunal found that there was a lack of clear evidence linking the appellant to the attempted export of contraband, noting that the goods were sealed at the appellant's premises under Customs supervision. As a result, the tribunal granted relief to the appellant by staying the recovery of the penalty amount pending the appeal's disposal.

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Issues: Application for waiver of pre-deposit of penalty under Section 114 of the Customs Act, 1962.

Analysis:
The case involved an application for the waiver of a penalty of Rs. 1,00,00,000/- imposed on the appellant under Section 114 of the Customs Act, 1962. The Commissioner found that the appellant had abetted an attempt to export red sander logs in contravention of the Exim Policy. The containers claimed to be stuffed with granite blocks for export were discovered to contain red sander logs valued at Rs. 84 lakhs upon examination by Customs authorities. After investigation, penalties were imposed on individuals involved in the illegal export, including the appellant. The appellant contested the penalty, arguing that there was no clear finding by the Commissioner regarding his involvement in the attempted export of contraband. The appellant claimed that the containers were sealed at his premises under Customs supervision, and there was no evidence to suggest his involvement in arranging the stuffing of contraband during transit to the port.

The appellate tribunal, after hearing both sides and examining the case records, noted the lack of a clear finding by the Commissioner on the appellant's involvement in the attempted export of contraband. The tribunal observed that the goods were sealed at the appellant's premises under Customs supervision, and there was no evidence linking the appellant to the stuffing of contraband during transit. As a result, the tribunal found that the appellant had made out a prima facie case against the penalty imposed on him. Consequently, the tribunal decided to waive the pre-deposit of the penalty of Rs. 1,00,00,000/- and stayed the recovery of the amount pending the appeal's disposal. The tribunal allowed the stay application, providing relief to the appellant in this matter.

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