Redemption fine under the Customs Act cannot be stayed where the statutory stay provision covers only duty or penalty.

The Tribunal had no statutory power to stay recovery of a redemption fine imposed in lieu of confiscation under the Customs Act. It held that the stay provision relied on extended only to duty or penalty, not to redemption fine, and subordinate rules could not enlarge the scope of the parent Act. Once confiscation took effect, the property vested in the Central Government under section 126, leaving no legal basis for a stay against recovery of the fine. The request for stay was therefore rejected.

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Issues: Whether the Tribunal had power to grant stay against recovery of redemption fine imposed in lieu of confiscation under the Customs Act.

Analysis: The confiscation order was passed under Section 115(2) of the Customs Act, and the assessee was given an option to redeem the launch on payment of fine. The Tribunal held that the statutory stay provision invoked by the assessee extended only to duty or penalty and did not cover redemption fine. It further held that rules could not enlarge the Act, and that once confiscation took effect, the property vested in the Central Government under Section 126 of the Customs Act. In those circumstances, there was no statutory basis for granting stay of recovery of the redemption fine.

Conclusion: The Tribunal had no power to grant stay against recovery of the redemption fine, and the request for stay was rejected.

Ratio Decidendi: A statutory stay provision limited to duty or penalty cannot be extended to redemption fine in lieu of confiscation, and subordinate rules cannot confer such a power where the parent Act does not.

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