Prima facie customs confiscation conditions were not met, so penalty pre-deposit was waived and recovery stayed.

On a prima facie view, the Tribunal found that the conditions of clauses (m) and (o) of Section 111 of the Customs Act were not shown to justify confiscation and insistence on a penalty pre-deposit. Clause (o) applies where goods were exempt at the time of import and the exemption was later not fulfilled, which was not the factual position recorded, and there was also no finding of misdeclaration of the imported goods. In light of that strong prima facie case, and since most of the duty had already been deposited, the Tribunal waived deposit of the penalty and stayed its recovery.

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Issues: Whether, on a prima facie view, the conditions of clauses (m) and (o) of Section 111 of the Customs Act were attracted so as to justify confiscation and require pre-deposit of penalty.

Analysis: The order records that clause (o) applies where goods are exempt at the time of import and the exemption is later not fulfilled, which was not the position on the facts noted. It further records that there was no finding of misdeclaration of the imported goods. On that basis, the Tribunal held that a strong prima facie case existed for waiver of the penalty deposit, especially since the bulk of the duty had already been deposited.

Outcome: Deposit of the penalty was waived and recovery of the penalty was stayed.

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