Pre-deposit waiver in customs duty dispute was declined; partial deposit was ordered and balance recovery stayed pending appeal.

In a dispute over denial of Notification No. 203/92-Cus. benefit following earlier availment of input stage credit, the tribunal considered whether complete waiver of pre-deposit and stay of recovery should be granted. It noted the duty, interest and penalty demand, and found that the applicants had not made out a prima facie case for total waiver, particularly in view of the objection that reversal of credit and payment of interest were outside the Amnesty Scheme timeline. Pre-deposit of Rs. 15 lakhs towards duty was directed within eight weeks, and the balance duty and penalty were stayed pending appeal.

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Issues: Whether waiver of pre-deposit and stay of recovery could be granted in a matter involving denial of benefit under Notification No. 203/92-Cus. on account of earlier availment of input stage credit.

Analysis: The application concerned recovery of duty, interest, and penalty. The relevant consideration at this stage was whether the applicants had made out a case for complete waiver, in the light of the objection that the reversal of credit and payment of interest were not within the time contemplated by the Amnesty Scheme. The balance of convenience, on a prima facie view, did not justify total waiver.

Outcome: Pre-deposit of Rs. 15 lakhs towards duty was directed within eight weeks. On such deposit, the balance duty and penalty were stayed pending the appeal, and the application was disposed of accordingly.

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