Pre-deposit waiver and prohibited goods under customs law: partial relief granted, wildlife hides treated as barred goods.

In waiver of pre-deposit proceedings, total relief was declined where the applicants did not show either a strong prima facie case for complete waiver or financial hardship, and one appellant had admitted the offence. The tribunal directed a partial pre-deposit of penalty instead. It also treated hides and skins of Schedule I wildlife species as prohibited goods because trade in such goods is barred under the Wildlife (Protection) Act, 1972, bringing them within section 2(33) of the Customs Act, 1962. That classification supported the confiscation and penalty findings, with only limited waiver granted and the balance required to be deposited within time.

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Issues: (i) Whether the appellants seeking waiver of pre-deposit had made out a prima facie case for total waiver of penalty. (ii) Whether the seized hides and skins, being covered by Schedule I to the Wildlife (Protection) Act, 1972, were prohibited goods for the purpose of the Customs Act, 1962.

Issue (i): Whether the appellants seeking waiver of pre-deposit had made out a prima facie case for total waiver of penalty.

Analysis: The applicants were at different stages of involvement. In the case of one appellant, part of the confiscated goods had already been allowed to be redeemed and the remaining claim was left for final hearing. Another appellant had voluntarily admitted the offence. Neither of them pleaded financial hardship. On these facts, a complete waiver of pre-deposit was not justified.

Conclusion: Total waiver of pre-deposit was declined in respect of the concerned appellants, and they were directed to pre-deposit 25% of the penalty imposed.

Issue (ii): Whether the seized hides and skins, being covered by Schedule I to the Wildlife (Protection) Act, 1972, were prohibited goods for the purpose of the Customs Act, 1962.

Analysis: The seized hides and skins were found to be swamp deer etc. included in Schedule I of the Wildlife (Protection) Act, 1972. Trading in such goods was prohibited under the relevant provisions of that Act, and therefore the goods fell within the meaning of prohibited goods under section 2(33) of the Customs Act, 1962.

Conclusion: The hides and skins were treated as prohibited goods for customs purposes, supporting the penalty and confiscation findings.

Final Conclusion: The pre-deposit applications were allowed only to a limited extent, with partial waiver granted and the balance directed to be deposited within the stipulated time, failing which the appeals would stand dismissed.

Ratio Decidendi: In a waiver of pre-deposit proceeding, total relief will not be granted where the applicants fail to show a prima facie case or financial hardship, and goods whose trade is prohibited by law are liable to be treated as prohibited goods under the Customs Act.

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