Pre-deposit waiver in duty disputes may be granted where sick-unit status and financial hardship justify interim relief.

Waiver of pre-deposit of duty and penalty was considered in an appeal arising under Rule 57CC. Although the Tribunal was not prima facie satisfied with the merits, it granted interim relief because the appellant was a sick industrial unit declared by BIFR and a revival package was under consideration. Financial hardship and the magnitude of the demand justified dispensing with the pre-deposit condition. The appeal was directed to be heard out of turn, while the substantive dispute remained pending.

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Issues: Whether the condition of pre-deposit of duty and penalty should be dispensed with pending appeal.

Analysis: The appellants were seeking waiver of pre-deposit in a duty demand arising under Rule 57CC. The Tribunal recorded that it was not prima facie satisfied with the merits, but took note of the appellant's status as a sick industrial unit declared by BIFR and the fact that a revival package was under consideration. On that basis, and considering the high amount involved, the Tribunal found it to grant waiver of pre-deposit and to fix the appeal for hearing out of turn.

Conclusion: The condition of pre-deposit of duty and penalty was dispensed with in favour of the appellant.

Final Conclusion: Interim relief was granted and the appeal was directed to be heard on a priority basis, while the substantive controversy remained pending.

Ratio Decidendi: Waiver of pre-deposit may be granted where the appellant shows a prima facie case is not decisive, but the financial hardship and sick-unit status justify interim relief pending appeal.

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