Customs penalty waiver and recovery stay granted where duty evasion was settled and remaining import-regulation breaches looked excessive.

Waiver of penalties and stay of recovery were granted in customs appeals involving alleged import-regulation contraventions after the duty-evasion aspect had already been settled under section 28(1A) of the Customs Act, 1962. The Tribunal treated the remaining dispute as confined to the alleged regulatory breach, noted that the penalties appeared prima facie excessive, and took into account comparable relief in connected matters and the pre-deposits already made. Recovery of the disputed amounts was stayed during pendency of the appeals, subject to a bar on refund of the stated amount until final disposal.

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Issues: Whether the appellants were entitled to waiver of the penalty amount and stay of recovery pending disposal of the appeals.

Analysis: The appeal arose from a case of alleged customs duty evasion and contravention of import regulations involving seizure of gold, jewellery and currency. The Tribunal noted that the duty-evasion aspect had already been settled under section 28(1A) of the Customs Act, 1962, and that what remained was the alleged contravention of import regulations. It further observed that the penalties appeared prima facie excessive and that similar relief had already been granted in connected matters. The Tribunal also noted the pre-deposits already made by the appellants.

Conclusion: Waiver of the penalties was granted for admission of the appeals and recovery of the disputed amounts was stayed during the pendency of the appeals, with a restriction against refund of the stated amount until final disposal.

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