Pre-deposit waiver under customs law was limited; full waiver denied, penalties stayed, and duty deposit ordered.

In an application for waiver of pre-deposit and stay of recovery, the applicants failed to show payment of the Special Additional Duty or any prior decision in their favour on imported garlic covered by Notification No. 56/98-Cus. The Tribunal adopted a lenient approach for the limited purpose of Section 129E of the Customs Act, 1962, but noted that no financial hardship had been pleaded. Full waiver was therefore declined, recovery of the penalties was stayed, and the applicants were directed to deposit the Special Additional Duty within six weeks and report compliance.

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Issues: Whether, in the applications for waiver of pre-deposit and stay of recovery, the applicants had made out a case for complete waiver of the Special Additional Duty and interim protection against recovery.

Analysis: The applications arose from ex parte orders confirming Special Additional Duty and equal penalties in respect of imported garlic covered by Notification No. 56/98-Cus. The materials placed did not establish payment of Special Additional Duty, and no prior decision covering the issue in favour of the applicants was shown. The Tribunal, however, considered the object of Section 129E of the Customs Act, 1962 and took a lenient view for the limited purpose of pre-deposit, while noting the absence of pleaded financial hardship.

Conclusion: Full waiver was declined. Recovery of the penalties was stayed, but the applicants were directed to deposit the Special Additional Duty within six weeks and report compliance.

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