Misdeclaration of goods defeats penalty waiver, with full deposit directed and enhancement proceedings initiated under customs law.

Misdeclaration of goods was treated as a clear admission supporting the adjudicating authority's findings, so the request for waiver or reduction of penalty in the stay application was found unsustainable. The Tribunal held that the appellant's conduct justified penalty linked to the duty element, directed deposit of the entire penalty, and issued notice proposing enhancement of penalty under the Customs Act.

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Issues: Whether the appellant was entitled to waiver or reduction of the penalty in the stay application and whether a case was made out for issuance of notice proposing enhancement of penalty under section 112A of the Customs Act.

Analysis: The appellant's goods were found to have been misdeclared, and the record was treated as showing a clear admission supporting the adjudicating authority's findings. On that basis, the Tribunal held that there was no substance in the request for waiver or reduction of penalty. It further held that the appellant's conduct justified imposition of penalty to the extent of the duty element, and noted that the penalty originally imposed was lower than both the redemption fine and the duty involved.

Conclusion: The stay application was rejected, the appellant was directed to deposit the entire penalty, and notice was issued proposing enhancement of penalty under section 112A of the Customs Act.

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