2000 (11) TMI 894 - AT - Customs

CEGAT grants unconditional stay on penalties in smuggling case due to lack of evidence and financial hardship

The Appellate Tribunal CEGAT, Kolkata granted unconditional stay on penalties imposed on individuals involved in a smuggling case due to lack of evidence ... Waiver of pre-deposit - stay of recovery of penalty - penalty imposed for smuggling - presumption of knowledge - financial hardship - security of revenueWaiver of pre-deposit - stay of recovery of penalty - presumption of knowledge - financial hardship - security of revenue - Whether the condition of pre-deposit of the penalties should be waived and recovery stayed during the pendency of the appeals. - HELD THAT: - The Adjudicating Authority's finding that the appellants/applicants had knowledge of the smuggled nature of the goods was based on presumption and assumption without evidential support. The applicants denied knowledge of the contents and active involvement in transportation, and also pleaded financial hardship supported by certificates. The Department's possession of the seized truck was noted as securing the revenue. In these circumstances the Court found that the applicants had made out a strong case for grant of an unconditional stay and for waiver of the pre-deposit condition, observing that recovery of the penalties should not be carried out pending appeal.Condition of pre-deposit of the penalties waived and recovery of the penalties stayed during the pendency of the appeals; appeals listed for hearing on 11-12-2000.Final Conclusion: Unconditional stay granted: pre-deposit requirement waived and recovery of penalties suspended pending determination of the appeals. The Appellate Tribunal CEGAT, Kolkata granted unconditional stay on penalties imposed on individuals involved in smuggling case due to lack of evidence and financial hardship. Pre-deposit condition of penalties waived during appeal process. Main appeals scheduled for hearing on 11-12-2000.