SANWAR LAL AGARWAL Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) In this application, waiver of pre -deposit and stay of recovery are prayed for in respect of an amount of penalty of Rs. 1 lakh imposed on the applicant by the Commissioner of Customs. The penalty has been imposed under Section 112(b) of the Customs Act, 1962. In the impugned order, some electronic goods have been absolutely confiscated under Section 111(d) of the Act. The above penalty imposed on the applicant is apparently connected with this confiscation. The seizure of the goods was made on 31 -3 -2002 under a panchnama which says that the goods had been found in the applicant's truck as early as on 24 -1 -2002. Between 24 -1 -2002 and 31 -3 -2002, the goods were dealt with by the Sale -tax authorities, but no sale -tax document correlating the goods to the truck appears to have been relied on by the Customs authorities in this case. It is also found that none of the goods was notified under Section 123 of the Customs Act. It is submitted by the Counsel for the applicant that there was no material on record before the Customs authorities to allege that the electronic goods were liable to confiscation and, for that matter, to allege that the truck was liable to confiscation. According to the learned Counsel, the time gap between the date of first detection of the goods in the truck (by the officers of customs) and that of the seizure thereof, without any cogent explanation, is enough to render the Department's case weak and consequently the applicant has a strong prima facie case.

(2.) In view of the above submissions which indicate a prima facie case for the applicant, waiver of pre -deposit and stay of recovery are granted in respect of the penalty amount. The appeal is posted to 29 -12 -2003.