Mr Mohammad Abdul Hakim vs. Commissioner Appeal Customs And Central Excise New Delhi & Anr.

Facts

The petitioner, Mr. Mohammad Abdul Hakim, was apprehended at Indira Gandhi International Airport on October 26, 2019, while attempting to depart for Riyadh via Muscat. His luggage contained Agarwood chips, which were subsequently verified by a Wild Life Inspector as Agarwood (Aquilaria Chips). The articles were confiscated and provisionally valued at INR 1,26,00,000/-. A Show Cause Notice was issued on April 27, 2020, leading to a final order of confiscation on July 24, 2023. The petitioner filed an appeal but sought a waiver of the pre-deposit condition under Section 129E of the Customs Act, 1962, citing his status as a labourer with insufficient means. It is undisputed that Agarwood is restricted goods requiring an export license, and the petitioner did not possess one.

Held

The Court held that the power to waive the pre-deposit condition under Section 129E of the Customs Act, 1962, is to be exercised only in "rare and deserving cases." The Court found that such cases require an examination not only of the economic capacity of the appellant but also the nature of the allegations and the evidence supporting them. In this instance, the petitioner failed to provide any explanation for the valid sourcing of the Agarwood chips and admitted to attempting their export without the requisite license. Consequently, the petitioner did not demonstrate that his case fell into the category of "rare and exceptional cases" warranting a waiver. The writ petition was dismissed.

Key Issues

1. Whether the petitioner's appeal before the appellate authority can be prosecuted without complying with the pre-deposit condition stipulated under Section 129E of the Customs Act, 1962, in light of his alleged financial hardship? Petitioner's contention: The petitioner argued that as a labourer, he lacks the financial capacity to meet the pre-deposit requirement and therefore sought a waiver of this condition, relying on previous judgments where High Courts have waived such conditions in special circumstances. Revenue's contention: The respondents asserted that the pre-deposit condition is mandatory and waiver is permissible only in "rare and deserving cases." They highlighted that the petitioner had attempted to export restricted goods without a license, indicating a failure to make out a case for waiver based on the nature of the allegations and evidence.