Customs Act duty waiver does not automatically cover penalty; conditional pre-deposit granted and balance recovery stayed.

Section 23 of the Customs Act, which relieves duty liability on relinquishment of title before clearance for home consumption, was held not to extend to penalty. Although title to the goods had been relinquished before any clearance order, the Tribunal found penalty prima facie imposable and no prima facie case for complete waiver of the balance penalty. Conditional waiver was therefore granted only on part-deposit, and recovery of the remaining penalty was stayed pending appeal.

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Issues: Whether the plea that Section 23 of the Customs Act, 1962, relating to non-liability to duty on relinquishment of title before clearance for home consumption, could be invoked to resist pre-deposit of penalty, and whether the appellant had made out a case for waiver of the balance penalty.

Analysis: The order records that the statutory benefit under Section 23 concerns duty liability and does not extend to penalty. On the facts noted, the title to the goods had been relinquished before any order for clearance for home consumption, yet penalty was found to be prima facie imposable. The Tribunal therefore held that there was no prima facie substance in the plea for complete waiver, while granting conditional waiver of the balance penalty and stay of recovery on part-deposit.

Conclusion: The request for full waiver was rejected and the appellant was directed to make a partial pre-deposit of penalty, with the remaining recovery stayed pending appeal.

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