Prima facie case for waiver of pre-deposit where alleged licence fraud was too remote from customs contravention.

The Tribunal held that the applicants had made out a prima facie case for waiver of pre-deposit and stay of recovery of penalties imposed under Section 112 of the Customs Act, 1962. The alleged misconduct concerned procurement of advance licences through misrepresentation and fabricated evidence before the licensing authority, but there was no finding that the applicants dealt with the imported goods or their disposal. On that basis, the alleged connection with any customs contravention was considered too remote to attract the Customs Act. The Tribunal also noted that one applicant had already made a substantial deposit during the proceedings, supporting relief.

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Issues: Whether the applicants made out a prima facie case for waiver of pre-deposit of penalties imposed under Section 112 of the Customs Act, 1962 and for stay of recovery.

Analysis: The penalties were founded on allegations that the applicants, said to be brokers in import licences, had assisted the procurement of advance licences by misrepresentation and submission of concocted evidence before the licensing authority. There was no allegation or finding that they had done anything in relation to the imported goods themselves or their disposal. The connection between the alleged acts and any contravention concerning the imported goods was held to be too remote to attract the Customs Act. The Tribunal also noted that one applicant had already deposited a substantial amount during the proceedings.

Conclusion: The applicants were entitled to waiver of pre-deposit and stay of recovery.

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