REGENT CLOTHING PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners impugn the order dated 24-3-2008 passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi dismissing the petitioners' application for complete waiver of the condition of pre-deposit but accepting the petitioners prayer for reduction in the amount of pre-deposit by directing petitioners No. 1 and 2, to pay a sum of Rs. 5 lacs and 2 lacs respectively instead of the amount of Rs. 15 lacs and 5 lacs.

(2.) Counsel for the petitioners submits that as an amount of Rs. 30.67 lacs, being the price of goods is in possession of the Authorities, the petitioners were not required to deposit the amount of penalty imposed, as a pre- condition to the hearing of the appeal. In support of the aforementioned argument, reliance is placed upon Section 129E of the Customs Act, 1962 . It is submitted that as per Section 129E, the condition of pre-deposit applies only where the duty and interest is demanded in respect of goods which are not under the control of the customs authorities. In the present case, as the price of goods is in possession of the respondents, the condition of pre- deposit would not apply to the petitioners.

(3.) We have heard learned counsel for the petitioners and perused the impugned order. We find no reason, legal or factual, to interfere with the impugned order. Section 129E of the Act reads as follows :-