SRI KRISHNA Vs. UNION OF INDIA (UOI)

JUDGEMENT

(1.) THIS order shall govern the disposal of CWP Nos. 3177/98 and 3276/98. In both the writ petitions respective Petitioners are aggrieved by the orders of the CEGAT passed under Section 129E of the Customs Act, 1962. It appears that a consignment of 133 pieces of woollen woven carpets valued at Rs. 44,45,000/ - was found at Tikonia Rly. Station, close to Indo -Nepal Border. The Adjudicating Authority formed an opinion that the goods seized at the railway station were in the process of being taken to Nepal by one Shiv Raj Tiwari. As to Sri Krishna (petitioner in CWP 3177/98) the Adjudicating Authority recorded a finding that 'he had made a false claim to smuggled goods at the railway station by producing a railway receipt.' As to V.C. Rao, and eight others the writ petitioners in CW 3276/98 the finding arrived at the Adjudicating Authority is that they were the persons who had by supporting the false name of Sri Krishna abetted in securing the possession/custody and control of the smuggled goods. A penalty of Rs. 5 lakh was imposed on Sri Krishna and a penalty of Rs. 25,000/ - each was imposed on Vishal Chand and eight others. These penalties are subject matter of appeals before the CEGAT. The CEGAT has by order dated 23 -4 -1998 directed Sri Krishna to deposit a sum of Rs. 2 lakhs and V.C. Rao and eight others to deposit a sum of Rs. 5,000/ - each by way of pre -deposit as a condition precedent to the hearing of the appeal.

(2.) THE learned Counsel for the petitioner has submitted that the case for penalty was not even prima facie made out and the Tribunal should have waived the entire penalty failing which the petitioner shall suffer undue hardship as they being poor persons would not be able to deposit the amount as directed by the Tribunal and would consequently be denied valuable right of their appeal being heard and decided on merits.

(3.) HAVING heard the learned Counsel for the petitioners, we are satisfied that there is substance in the submission made on behalf of the petitioners.