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2010 (2) TMI 627 - SUPREME COURTStay – failure to meet export obligation - the Division Bench of the High Court should not have passed the impugned order for deposit of Rs.20,00,000/- for each of the appeals when the Appellate Authority had directed the appellant to make pre-deposit for Rs.5,00,000/- for both the appeals. The second proviso to sub-section (1) of Section 15 of the Act states that in the case of an appeal against a decision or order imposing a penalty or redemption charges, no such appeal shall be entertained unless the amount of the penalty or redemption charges has been deposited by the appellant. The third proviso to sub-section (1) of Section 15 of the Act, however, states "where the Appellate Authority is of opinion that the deposit to be made will cause undue hardship to the appellant, it may, at its discretion, dispense with such deposit either unconditionally or subject to such conditions as it may impose." Hence, under the Act discretion is vested in the Appellate Authority to dispense with a pre-deposit of penalty either unconditionally or subject to such condition as the Appellate Authority may impose. If in exercise of such discretion, the Appellate Authority in the present case dispensed with the pre-deposit penalty of Rs.1,30,00,000/-in each of the two appeals subject to the appellant depositing a sum of Rs.5,00,000/-, the Division Bench of the Delhi High Court ought not to have enhanced the amount of pre-deposit to Rs.20,00,000/- for each of the two appeals.
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