2015 (3) TMI 332 - AT - Customs

Tribunal Waives Pre-Deposit of Penalties for Illegal Courier Parcel Import

Kapil Malhotra, Manish Anant Patyane, Ravindra Maruti Chandiwale, Anil Patyane, Rohit H Garate, Navalai Courier Service, Praful Maniar, Dhaval Enterprises Versus Commissioner of Customs, Airport, Mumbai

The Tribunal granted a waiver from the pre-deposit of penalties imposed under Sections 112(a)(b) and 114AA of the Customs Act, 1962 for alleged illegal ... Confiscation of goods - Imposition of penaltyu/s 112(a)(b) and 114AA - Held that:- Inasmuch as the goods have been absolutely confiscated and they are in the custody of the department, that should constitute sufficient security for the Revenue. Therefore, following the ratio of the hon'ble apex Court's decision in the case of Bhavya Apparels Pvt. Ltd. vs. Union of India [2007 (9) TMI 274 - SUPREME COURT OF INDIA] invoking the provisions of Section 129E of the Customs Act, 1962 might not arise. Accordingly, we grant waiver from pre-deposit of the penalties imposed on the appellants and stay recovery thereof during the pendency of the appeals - Stay granted. Issues:Penalties imposed under Sections 112(a)(b) and 114AA of the Customs Act, 1962 for alleged illegal import of courier parcels. Stay petitions against penalties imposed.Analysis:The appeals and stay petitions were filed challenging the penalties imposed by the Commissioner of Customs under Sections 112(a)(b) and 114AA of the Customs Act, 1962 for the alleged illegal import of courier parcels. The appellants argued that the courier parcels in question were already confiscated by the department, ensuring the protection of revenue interests. The Revenue, represented by the Deputy Commissioner, reiterated the findings of the adjudicating authority.Upon considering the submissions from both sides, the Tribunal noted that the confiscated goods were already in the custody of the department, serving as sufficient security for the Revenue. Citing the decision in Bhavya Apparels Pvt. Ltd. vs. Union of India [2007 (216) ELT 347 (SC)], the Tribunal concluded that invoking the provisions of Section 129E of the Customs Act, 1962 might not be necessary in this case. As a result, the Tribunal granted a waiver from the pre-deposit of the penalties imposed on the appellants and stayed the recovery of penalties during the pendency of the appeals.This judgment highlights the importance of considering the status of confiscated goods in determining the need for pre-deposit of penalties under the Customs Act, 1962. The decision also underscores the Tribunal's discretion to grant waivers and stays based on the specific circumstances of each case, ensuring a fair and just resolution for the appellants involved in the legal proceedings.