High Court grants petitioner 25% penalty deposit, appeal stay pending, emphasizing prima facie case and financial hardship.

The High Court allowed the petitioner to deposit 25% of the penalty within four weeks, enabling the appeal to be heard by the Commissioner with a stay on the penalty's enforcement until disposal. The Court emphasized the exceptional nature of its intervention, considering the petitioner's prima facie case, arguable issues, and financial hardship. The Court did not address the other prayers, leaving them for the Appellate Authority to decide. The rule was made absolute, and the Civil Application was disposed of accordingly.

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Issues involved: Challenge to order disallowing waiver of predeposit pending appeal u/s 114 of the Customs Act 1962.

Summary:
The petitioner challenged the order disallowing waiver of predeposit pending appeal u/s 114 of the Customs Act 1962, passed by the Commissioner (Appeals) on 8th November 2011. The customs authorities alleged willful avoidance of duty and imposed a penalty of &8377; 4 lakhs on the petitioner. The petitioner appealed against the order and requested waiver of predeposit citing lack of cross-examination of witnesses and retraction of his confessional statement. The Commissioner, in a common order, did not waive any part of the penalty, leading the petitioner to approach the High Court.

Upon hearing both sides, the Court found that the petitioner had a prima facie case with arguable issues and financial hardship. The Court allowed the petitioner to deposit 25% of the penalty within four weeks, after which the appeal would be entertained by the Commissioner on merits with a stay till disposal. The Court emphasized that such intervention was exceptional and not routine, made based on the facts of the case.

The Court did not examine the other prayers of the petitioner, leaving them for the Appellate Authority to consider. The rule was made absolute, and the Civil Application was disposed of accordingly.

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