2001 (1) TMI 413 - AT - Central Excise

Waiver of Pre-Deposit & Stay of Penalties Granted for Violation of Law by Public Carrier

The Appellate Tribunal CEGAT, New Delhi granted waiver of pre-deposit and stay of recovery of penalties imposed on a Public Carrier and its Manager for ... Waiver of pre-deposit - stay of recovery - penalty for dealing with smuggled goods - knowledge or reasonable belief - actus reus - confiscationWaiver of pre-deposit - stay of recovery - knowledge or reasonable belief - Grant of waiver of pre-deposit and stay of recovery of the penalties imposed on the applicants during the pendency of the appeals - HELD THAT: - The Tribunal examined whether the Department had established, even on a prima facie basis, that the applicants had knowledge or a reasonable belief that smuggled goods had been entrusted to them for transport. Noting the Adjudicating Authority's findings about actus reus and the fictitious nature of consignors and consignees, the Tribunal found that the Department had not made out knowledge or reasonable belief on the part of the applicants. In view of that absence of prima facie satisfaction as to the requisite mental element, the applicants made out a prima facie case for relief. Consequently, the Tribunal waived the requirement of pre-deposit of the penalties and ordered a stay on recovery of the penalties during the pendency of the appeals. [Paras 3]Pre-deposit waived and recovery of the penalties stayed during the pendency of the appeals.Final Conclusion: The Tribunal granted waiver of the pre-deposit and stayed recovery of the penalties imposed on the applicants, holding that the Department had not prima facie established knowledge or reasonable belief that the applicants were transporting smuggled goods. The Appellate Tribunal CEGAT, New Delhi granted waiver of pre-deposit and stay of recovery of penalty of Rs. 5 lakhs each imposed on a Public Carrier and its Manager for dealing with ball bearings of foreign origin imported into India in violation of law. The Tribunal found no force in the argument that the transporters were unaware of the nature of the consignments, stating they acted as facilitators in a smuggling activity. The Department failed to establish knowledge or reasonable belief on the part of the applicants, so the Tribunal waived the pre-deposit of penalties and stayed recovery during the appeal process.