2002 (8) TMI 501

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....adha Arun, SDR, for the Respondent. [Order per : G.A. Brahma Deva, Member (J) (Oral)]. - This Stay application is filed by the applicants for the waiver of pre-deposit of duty amounting to Rs. 52,34,312/- and penalty of Rs. 3,50,000/- and stay of the recovery proceedings. 2. Heard both sides. 3. It was submitted by the Counsel that duty has been demanded from the Financial Co....

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....mended. As explained supra, M/s. APSFC have not only taken possession of the goods lying in a Customs Bonded Warehouse but have sold the same to a third party without de-bonding. Though the sale proceeds of Rs. 144.68 lakhs are liable for confiscation under the provisions of Section 121 of the Customs Act, 1962, as ordered by Hon'ble High Court in judgment dt. 25-4-2001 and as the goods were allow....

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....e was also made party to the proceeding and hence duty has been determined against the loanee and demanded from the APSFC since M/s. APSFC have not only taken possession of the goods lying in a Customs Bonded Warehouse but have sold the same to a third party without de-bonding liable to the disputed amount. 5. The Counsel submitted that the duty liability cannot be imposed on the purchaser....

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....ing that in the event in any adjudicating proceeding any amount is determine against the loanee, it shall, out of the sale proceeds, pay the same." 7. Further, it was submitted by the Counsel that the Excise Department have also filed a writ petition (No. 2044/93) against the assessee (APSFC) before the High Court and the same is pending. He also fairly conceded that the outcome will throw....