By TIOL News Service

MUMBAI, MAY 20, 2016: THE appellant imported a yacht and filed bill of entry as yacht "AZIMUT 68". It was noticed by Customs authorities that there was mis-declaration of the description of yacht and also the value,hence it was seized.

A SCN came to be issued and the adjudicating authority confirmed the demand of duty with interest, imposed penalties and confiscated the yacht with an option to redeem the same on payment of redemption fine.

An appeal was preferred before the CESTAT by depositing an amount equivalent to 7.5% of the Customs duty as per the provisions of Section 129E of the Customs Act, 1962.

Vide the miscellaneous application, the appellant prays for stay of the operation of the impugned order in respect of the redemption fine imposed. Inasmuch as the applicant contends that in the absence of any stay, department will take coercive action to recover the same and this would negate the provisions of Section 129E of Customs Act; that the Tribunal has got inherent powers under Rule 41 of CESTAT Procedure Rules to stay the recovery of the redemption fine in the interest of justice. Inter alia, the case law of Gammon India Ltd. - 2013-TIOL-928-CESTAT-MUM was also cited.

The Bench observed that the application lacks merit since the Tribunal has no power to entertain any stay petition against impugned order

After reproducing section 129E of the Customs Act, 1962, it is further observed -

++ There is no provision for filing any application for stay of the impugned order or for waiver of pre-deposit of any amount. If the importer complies with the provisions as reproduced here-in-above there is no requirement of filing any applications for any reason. In the absence of any statutory provision this miscellaneous application cannot be entertained.

++ The provisions of erstwhile Section 129E of Customs Act, 1962 had a proviso for filing an application for waiver of any amount. Exercising these powers, Tribunal used to grant waiver or stay of the impugned order, even in respect of the redemption fine imposed. By invoking inherent powers of the Tribunal, orders were passed for staying operation in respect of redemption fine. All the case laws cited by learned Counsel were the decisions under erstwhile Section 129E of Customs Act, 1962, hence may not be applicable in the current scenario.

Holding that there is no merit in the miscellaneous application, the same was dismissed.

(See 2016-TIOL-1201-CESTAT-MUM)