Judgment:
1. These stay applications arise out of appeals Nos. C/141/2001-NB, C/136/2001-NB(SM) and C/140/2001-NB(SM) which have been preferred against the common order in original passed by the Commissioner of Central Excise dated 3.2.01.
2. In all the stay applications the appellants have sought complete waiver of the penalty amount of Rs. 1 lakh which had been imposed on each of them under Section 112 of the Customs Act.
3. While arguing these stay applications the learned counsel has contended that all the 25 biscuits of gold recovered from Mahesh Chand Verma and Mukesh Kumar Gupta appellants are already with the Customs authorities and being not financially well off they are not in a position to make pre-deposit of Rs. 1 lakh each. The counsel has, however, offered to make pre-deposit of Rs. 20,000/- each on behalf of these appellants.
4. In the case of appellants, Hari Babu Gupta the counsel has contended that the currency of Rs. 80,000/- recovered from him is already with the Custom authorities and that amount is enough to safeguard the interest of the Revenue.
5. The learned SDR on the other hand has contended that no prima facie case is made for allowing the waiver of the pre-deposit of the penalty amounts to any of the appellants.
7. The bare perusal of the impugned order shows that on interception of the appellants, 12 gold biscuits of foreign origin from Mahesh Chand Verma and 13 gold biscuits of foreign origin from Mukesh Kumar Gupta, appellants were recovered and seized on 3.8.98 as for the lawful possession of the same they could not produce any document. Those 25 gold biscuit are already with the Customs authorities. These appellants have an arguable case. Therefore, keeping in view the facts and circumstances of the case, in my view, the offer of the learned counsel regarding pre-deposit of Rs. 20,000/- each by them for the purposes of hearing of the appeals, deserves to be accepted.
8. However, the case of Hari Babu Gupta, appellant stands on different footing. His Rs. 80,000/- which were allegedly recovered from his possession, are already with the Customs authorities and that is a quite substantial amount. He has also got an arguable case. The interest of Revenue already stands protected being in possession of substantial amount.
9. Therefore, waiver of the pre-deposit of the entire penalty amount deserves to be allowed to this appellant.
10. In view of the discussion made above, the stay application of Hari Babu Gupta, appellant is allowed unconditionally. However, the appellants Mahesh Chand and Mukesh Kumar Gupta are directed to make pre-deposit of Rs. 20,000/- (Rupees twenty thousand only) each within eight weeks from today. On making this deposit the requirement of pre-deposit of the balance penalty amount shall remain waived and recovery stayed till the disposal of the appeals. But, in case they failed to make this deposit, their appeals shall become liable to be dismissed under Section 129-E of the Customs Act. To come up for reporting compliance on 23.8.2001.