2010 (11) TMI 106 - AT - Customs

Tribunal Upholds Penalties for Smuggling Mercedes Benz Car, Emphasizes National Security

The Tribunal upheld penalties imposed on the appellants for their involvement in smuggling a Mercedes Benz car, emphasizing the seriousness of the offense ... Waiver of pre-deposit – penalty – smuggling of new Mercedes Benz car which was imported without customs check and replaced by an old car – Car found in premises of importer - none of the learned Advocates are questioning the fact of smuggling out of the impugned Mercedes Benz car and replacement of the same in the Container Freight Station - none of the appellants have made out a prima facie case for total waiver of the requirement of the pre-deposit of penalty amounts – Directed to pre-deposit 10% of penalties Issues: Smuggling of Mercedes Benz car, imposition of penalties, pre-deposit of penalty amounts, differential duty demand, waiver of pre-deposit of differential duty, early hearing of appealsIn the case, a new Mercedes Benz car imported through Nhava Sheva port was found smuggled out from the Container Freight Station and replaced with an old Toyota Corolla car. The adjudicating Commissioner imposed penalties on the appellants for their involvement in the smuggling activities. The Customs regulations were emphasized as crucial for economic health and national security, highlighting the seriousness of the offense. The appellants claimed innocence, but the Tribunal found no prima facie case for a total waiver of penalty pre-deposit, directing them to pre-deposit 10% of the penalties within four weeks for the appeals to be heard. Compliance was to be reported by a specified date, with the balance amounts waived during the appeal's pendency.Regarding the differential duty demand against the CFS operator, the Tribunal ruled that since the confiscated Mercedes Benz car's sale proceeds had been appropriated, there was no requirement for the operator to pay any duty. Consequently, the pre-deposit of the differential duty was waived during the appeal process. The Tribunal also mentioned that miscellaneous applications for early hearing of the appeals would be considered after verifying compliance with the pre-deposit directive. The judgment underscored the importance of upholding Customs regulations to safeguard national security and economic interests, while ensuring penalties for those involved in smuggling activities.