Pre-deposit waiver in duty and penalty dispute allowed only partly, with recovery stayed for the balance pending appeal.

Waiver of pre-deposit was considered in relation to confirmed duty and penalty arising from shortage of modvatable inputs. The explanation for the shortage was found not prima facie convincing, but the merits were left open for final disposal. On the facts and circumstances, the tribunal required a partial deposit and protected the balance during the pendency of the appeal. The appellant was directed to make a specified deposit within six weeks, while waiver of pre-deposit with stay of recovery continued for the remaining duty and penalty.

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Issues: Whether waiver of pre-deposit of the confirmed duty and penalty was justified pending appeal.

Analysis: The application concerned dispensing with pre-deposit in respect of duty confirmed on shortage of modvatable inputs and the penalty imposed. The explanation offered for the shortage was found not prima facie convincing, though the merits were left open for final disposal. Considering the facts and circumstances, partial deposit was directed and the balance was protected during the pendency of the appeal.

Outcome: The appellant was directed to deposit Rs. 45,000 within six weeks, and waiver of pre-deposit with stay of recovery was granted for the balance amount of duty and penalty.

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