2012 (4) TMI 145 - AT - Customs

Tribunal waives penalty for project financing and sale under Customs Act

The Appellate Tribunal CESTAT, New Delhi waived the penalty imposed under Section 112(b) of the Customs Act, 1962 for applicants who financed a project, ... Application for waiver of pre-deposit of penalty - applicants financed the project of client who failed to repay the amount in loan thus took over the project and thereafter sold it - contention of the applicants is that they are not concerned with the evasion of customs duty and penalty is not sustainable - Held that:- as the applicants only financed the project and thereafter sold on default of payment had not violated the provisions of Customs Act -Pre-deposit penalty is waived and is stayed during pendency of the appeal. The Appellate Tribunal CESTAT, New Delhi heard an application for waiver of penalty imposed under Section 112(b) of the Customs Act, 1962. The applicants financed a project, took over, and sold it to another company. The Tribunal found that the applicants did not violate Customs Act provisions and waived the penalty, staying its recovery during the appeal. (2012 (4) TMI 145 - CESTAT, New Delhi)