1999 (1) TMI 196 - AT - Customs

Summary

Issues:
1. Imposition of penalties under Sections 112A and 114(1)(i) of the Customs Act, 1962 on the appellant.
2. Request for waiver of pre-deposit condition of penalties and stay of recovery for the main appeal.
3. Allegations of physical torture leading to retracted statements by the applicant and his wife.
4. Dispute over the importation and declaration of currency and gold by the appellant.
5. Examination of evidence and submissions for waiver and stay based on financial hardship.

Analysis:
1. The judgment dealt with the imposition of penalties on the appellant under Sections 112A and 114(1)(i) of the Customs Act, 1962. The appellant, an Iranian national, sought waiver of the pre-deposit condition of these penalties and a stay on their recovery for the main appeal. The appellant's counsel argued that the penalties were unwarranted due to innocent technical lapses in declaring currency upon arrival in India. The appellant claimed that the confiscation of currency and imposition of penalties were not justified.

2. The defense contended that the statements given by the appellant and his wife were made under physical torture by Customs officers, leading to their retraction later. The defense highlighted discrepancies in the statements and presented evidence to challenge the allegations, including the lack of evidential value in the retracted statements. Reference was made to the Tribunal's previous findings to support the defense's arguments against the penalties imposed.

3. The Revenue argued that the recovery of incriminating evidence, such as a receipt for gold purchase and an elastic band for concealing gold bars, supported the charges against the appellant. The Revenue maintained that the penalties were lenient considering the value of the contraband and the failure to declare currency under Section 113 of the Act.

4. The Tribunal carefully considered the submissions and evidence presented by both parties. It noted the retracted statements of the appellant and the corroborating evidence found, such as the receipt for gold purchase and the recovery of incriminating items. The Tribunal also examined the discrepancies in the statements and evidence, ultimately directing the appellant to make specified payments towards the penalties imposed to waive the remaining amount and stay its recovery.

5. The judgment concluded by addressing the financial hardship claimed by the appellant and his wife, directing them to make specified payments within a stipulated period to proceed with the appeal. The Tribunal allowed for installment payments with a deadline for full deposit, emphasizing the importance of compliance and setting a future date for reporting on the payments made.