JAYANTILAL B. SHAH Vs. COMMR. OF CUSTOMS (PREV.)

JUDGEMENT

(1.) THE above application for waiver of pre -deposit of penalty of Rs. 50,000/ - arises out of the order of the Commissioner of Customs, Mumbai. Penalty has been imposed for the reason that the transaction between M/s. Raj Gems, of which the applicant is a partner, and Shri Mustafa Ahadi, of selling 56 carats of diamonds (out of a total quantity of 1762.99 carats of diamonds) seized from one Iranian passenger, Mr. Daryoush Khodabandheloo, on 4 -3 -1996 when he was in the process of boarding flight to Dubai, subsequently confiscated by the impugned order, was not in consonance with the law. Mustafa Ahadi is the person who has handed over diamonds in question to Daryoush Khodaband -heloo.

(2.) ON hearing both sides and noting that, prima facie, selling diamonds to a person of foreign origin is not an offence and further noting that there is no material on record to show that the applicant herein had knowledge that the diamonds would be handed over to someone who would attempt to smuggle them out of India, we hold that strong prima facie case for waiver has been made out and hence dispense with the pre -deposit of the penalty and stay recovery thereof pending this appeal.