MEGHNA EXPORTS Vs. CEGAT

JUDGEMENT

(1.) This Writ Petition has been filed by two petitioners contesting two sets of orders passed by the Customs, Excise and Gold (Control) Appellate Tribunal. In the case of the first petitioner, the Collector of Customs levied a penalty of Rs. 10 lakhs on the first petitioner and a penalty of Rs. 2.5 lakhs on each of two partners. Likewise, in the case of the second petitioner also a like amount of Rs. 10 lakhs was levied as penalty against the second petitioner and a further penalty of Rs. 2.5 lakhs on each of its two partners.

(2.) These orders were appealed against in the CEGAT. Initially an order was passed on 28-5-1993 so far as the first petitioner was concerned to pre-deposit Rs. 2.5 lakhs towards penalty amount and its partners were directed to pre-deposit Rs. 25,000 each towards penalty. Likewise, in the case of the second petitioner there was a similar direction to pre-deposit Rs. 2.5 lakhs towards penalty on the second petitioner and the two partners were directed to pre-deposit Rs. 25,000 each towards penalty.

(3.) The petitioners then moved the CEGAT again for modification of the aforesaid orders by pointing out that there was in each of the case of the petitioners a pre-deposit of Rs. 2.29 lakhs and odd deposited with the Collector of Customs, but the goods in spite of the said deposit had not been got released and they still remain with the department. The petitioners pointed out that the said amount of Rs. 2.29 lakhs and odd in each case may be adjusted towards the amounts payable as per the earlier order of CEGAT towards penalties. By its second order dated 23-8-1993 the Tribunal refused to modify the earlier order. Elaborate arguments were advanced before the Tribunal for the petitioners stating that an amount of duty which the parties had pre-deposited could be directed to be adjusted towards the pre-deposit before the Tribunal. The said contention was, however, rejected. While the Tribunal rejected the submissions of the petitioners, it has not, however, specifically stated that in each of these cases it had considered necessary for each of the petitioners to deposit Rs. 2.5 lakhs plus Rs. 2.29 lakhs towards penalty.