Writ appeal directs compliance with order, penalty issue to be determined in appeal proceedings

The writ appeal was disposed of with the appellant directed to comply with the order within the specified time. The court held that the issue of penalty amount and the application of Section 112 of the Customs Act would be determined during the appeal proceedings, not in the current writ appeal. No costs were awarded, and the connected miscellaneous petition was closed.

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Issues involved:
- Challenge against the order of the Customs, Excise and Service Tax Appellate Tribunal regarding pre-deposit of penalty
- Interpretation of Section 112 of the Customs Act, 1962 regarding imposition of penalty on individual directors

Analysis:

1. The appellant filed a Writ Petition against the order of the Customs, Excise and Service Tax Appellate Tribunal directing a pre-deposit of 25% of the penalty imposed. A Single Judge modified the order reducing the pre-deposit amount and granting four weeks for compliance. A subsequent Miscellaneous Petition seeking further modification was dismissed, but additional time was granted. The appellant appealed against this order.

2. The appellant contended that the penalty amount was excessive, but it was held that this issue should be decided by the Tribunal while hearing the appeal on merits. Another argument was based on Section 112 of the Customs Act, claiming a bar on imposing penalties on individual directors when the company is penalized. The court found no substance in this argument, stating that the Act does not prohibit imposing penalties on directors. This issue was also left to be decided during the appeal process. The appellant was directed to comply with the Single Judge's order within eight weeks.

3. The writ appeal was disposed of with the appellant directed to comply with the order within the specified time. No costs were awarded, and the connected miscellaneous petition was closed. The judgment emphasized that the decision on the penalty amount and the application of Section 112 would be addressed during the appeal proceedings, not in the current writ appeal.

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