Customs seizure and pre-deposit relief: Tribunal granted interim stay where police lacked Customs Act powers and prima facie lawful importation was shown.

Section 123 of the Customs Act was considered in relation to gold seized by the police, but the seizure was made by Mumbai city police without Customs Act powers. On the facts before the Tribunal, the applicant showed a prima facie case of lawful importation shortly after seizure, and the departmental discrepancy was not enough to displace that case at the interim stage. The Tribunal granted waiver of pre-deposit of penalty and stayed recovery, while making clear that the application was limited to interim relief and not a final determination on merits.

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Issues: Whether Section 123 of the Customs Act could be applied to gold seized by the police, and whether the applicant was entitled to waiver of pre-deposit of penalty and stay of its recovery.

Analysis: The seizure was made by the Mumbai city police, who had no powers under the Customs Act. On the facts placed before the Tribunal, the applicant had prima facie shown lawful importation of the gold shortly after seizure, and the discrepancy relied upon by the department did not displace that prima facie case at this stage. The application was considered only for interim relief and not for final adjudication on merits.

Outcome: Waiver of deposit of the penalty was granted and recovery was stayed.

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