HARKARAN DASS VEDPAL Vs. C.C., LUDHIANA

JUDGEMENT

(1.) HEARD both sides. The applicants filed this application for waiver of pre -deposit of penalty of Rs.2 lakhs imposed under Section 112(b) of the Customs Act, 1962. The contention of the applicants is that the applicants financed the project of Perfect Gold India Ltd. as Perfect Gold India Ltd. failed to repay the amount in loan. The applicants being a financier and took over the project and thereafter sold to Zigma Software Ltd. The contention of the applicants is that the applicants are not concerned with the evasion of customs duty. In these circumstances, penalty is not sustainable. Revenue submitted that the applicants are aware of the capital goods procured by M/s. Perfect Gold India Ltd. without payment of duty and are in the bonded warehouse. As the applicants cleared the goods to DTA, therefore, the applicants violated the provisions of Customs Act.

(2.) KEEPING in view the facts and circumstances of the case, as the applicants only financed the project of Perfect Gold India Ltd. and thereafter sold on default of payment, prima facie, we find that the applicants had not violated the provisions of Customs Act, 1962 which made applicants liable for any penalty. Pre -deposit of the penalty is waived and recovery of the same is stayed during pendency of the appeal. Stay petition is allowed.