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Issues: (i) Whether imposition of a composite penalty under two different statutes was bad in law; (ii) whether the appellants had made out a prima facie case for waiver of pre-deposit.
Issue (i): Whether imposition of a composite penalty under two different statutes was bad in law.
Analysis: The order relied on the principle that a penalty imposed for contraventions under more than one statute is not per se invalid merely because it is composite. Where the contraventions are distinct, the quantum may require separate determination under the respective enactments, but the composite character of the penalty does not by itself vitiate the order.
Conclusion: The composite penalty was not held to be bad in law.
Issue (ii): Whether the appellants had made out a prima facie case for waiver of pre-deposit.
Analysis: The recovery of the gold biscuits was not in dispute, and the materials on record linked the appellants to the seized goods. On that basis, the appellants were found not to have established a prima facie case for complete waiver of deposit.
Conclusion: The request for full waiver was rejected and partial pre-deposit was directed.
Final Conclusion: Interim relief was granted only to the extent of staying recovery of the balance penalty after partial deposit, while the challenge to the composite penalty failed at the prima facie stage.
Ratio Decidendi: A composite penalty imposed for contraventions under different statutes is not invalid merely because it is composite, and waiver of pre-deposit depends on whether the appellant establishes a prima facie case.