1996 (1) TMI 213 - AT - Customs

Summary

Issues:
1. Provisional release of confiscated truck pending appeal.
2. Imposition of redemption fine and penalty on the applicant.
3. Dismissal of the two applications by the adjudicating authority.
4. Consideration of pleas from both sides by the tribunal.
5. Decision on the release of the truck and waiver of pre-deposit and penalty recovery.

Analysis:

1. The Applicant, the owner of a truck carrying contraband goods worth Rs. 5.5 lakhs, sought provisional release of the truck during the appeal process. The adjudicating authority did not release the truck despite a request, causing the Applicant significant financial losses. The Applicant's consultant argued for the release of the truck on easy terms, citing losses incurred due to non-release and deterioration of the truck.

2. The Respondent, opposing the release, justified the redemption fine and penalty imposed, stating that the cavity in the truck could not have been built without the owner's consent. The Respondent argued that the fines were reasonable considering the circumstances, including the involvement of the owner in the cavity construction.

3. The tribunal noted that the confiscated vehicle was a public carrier and acknowledged the substantial losses suffered by the Applicant due to non-release. After considering the arguments from both sides, the tribunal ordered the release of the truck on a pre-deposit of Rs. 50,000 and a personal bond, with the condition to destroy the cavity at the owner's expense in the presence of a Customs Officer.

4. Regarding the Stay Petition for waiver of pre-deposit and penalty recovery, the tribunal unconditionally allowed the Stay Petition, exempting the Applicant from making any pre-deposit and prohibiting the Revenue from recovering the penalty during the proceedings. The truck was to be released immediately upon compliance with the tribunal's directions.

5. The tribunal directed the Assistant Commissioner of Customs, Siliguri, to ensure compliance with the order and release the truck upon fulfillment of the specified conditions. The judgment favored the Applicant by granting the release of the truck and waiving the pre-deposit and penalty recovery during the appeal proceedings.