Pre-deposit exemption in duty and penalty dispute was limited after prima facie review of seizure and dummy-unit allegations.

Pre-deposit exemption in a duty and penalty appeal was examined on a prima facie basis, taking into account seizure of finished goods, the allegation that one unit was a dummy unit, the absence of evidence of independent manufacture by that unit, and the appellant's claim of financial difficulty. On that assessment, partial relief was not granted; the appellant was directed to deposit duty and penalty amounts within six weeks, and the matter was listed for compliance.

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Issues: Whether the appellant was entitled to exemption from pre-deposit of the duty and penalty demanded pending appeal.

Analysis: The application was considered on a prima facie assessment of the record, including the seizure of finished goods, the allegation that one unit was a dummy unit, the absence of evidence showing independent manufacture by that unit, and the appellant's plea of financial difficulty.

Outcome: The appellant was directed to deposit Rs. 2 lakhs towards duty and Rs. 1 lakh towards penalty within six weeks, and the matter was posted for compliance.

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