Appellant requests waiver of penalties under Customs Act but Tribunal demands Rs.2 lakhs deposit.

The appellant sought a waiver of pre-deposit penalties under Sections 114 and 114AA of the Customs Act, 1962, amounting to Rs.13 lakhs. The penalties were imposed for exporting over-valued goods while impersonating himself. Despite citing financial hardship and a High Court directive, the appellant was directed by the Tribunal to deposit Rs.2 lakhs within eight weeks for the appeal to proceed. Failure to comply would result in the dismissal of the appeal. Compliance with the deposit directive was necessary for further proceedings to occur before the first appellate authority.

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Issues: Waiver of pre-deposit of penalties under Sections 114 and 114AA of Customs Act, 1962.

Analysis:
1. The appellant filed a Stay Petition seeking a waiver of pre-deposit of penalties amounting to Rs.13 lakhs imposed under Sections 114 and 114AA of the Customs Act, 1962.
2. The penalties were imposed due to the appellant impersonating himself and exporting over-valued goods that were liable for confiscation.
3. The Order-in-Original imposed the penalties, and the appellant's appeal was dismissed for non-compliance as he failed to deposit Rs.5 lakhs as directed by the first appellate authority.
4. The appellant argued financial hardship and cited a High Court directive in a similar case where appellants were asked to deposit 25% of the penalty imposed.
5. The Tribunal noted doubts regarding the maintainability of the penalties under the Customs Act, 1962, and directed the appellant to deposit Rs.2 lakhs within eight weeks for the appeal to be heard by the first appellate authority.
6. The appellant was instructed to report compliance by a specified date, after which the first appellate authority would hear the appeal and pass an order on the case's merits.
7. The Stay Petition and the appeal were disposed of accordingly, with the appellant required to comply with the deposit directive for further proceedings to take place.

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