Court Partially Stays Penalty, Requires Appellant to Pay 50% Interest, Deposits to Release Goods

The court granted a partial stay on the penalty, requiring the appellant to pay 50% of the interest amount. The appellant was directed to deposit Rs. 40,00,00,000 within a week and another Rs. 40,00,00,000 within six weeks to secure the release of detained goods. Failure to comply would result in dismissal of the appeal and potential legal action against the appellant.

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Issues: Application for stay of demand of interest and penalty, detention of imported and export goods, undertaking for deposit of amount, release of goods upon deposit, consequences of non-deposit.

The judgment deals with an application for stay of the demand of interest and penalty. The Solicitor General suggested a partial stay on the penalty but required the appellant to pay at least 50% of the interest amount of Rs. 102 crores. The senior counsel for the appellant argued that goods imported and meant for export were detained at Chennai Port Trust and Bangalore Airport/Customs Depot without justification. The court directed the appellant to submit an undertaking to deposit Rs. 40,00,00,000 with the respondent within a week and another Rs. 40,00,00,000 within six weeks. Upon giving the undertaking, the detained items would be released on payment of usual duty. The senior counsel further stated that failure to deposit the stipulated amount would result in the appeal being dismissed and the appellant being liable for legal action. The interlocutory application was disposed of accordingly.

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