Pre-deposit waiver for financial hardship granted where project stoppage, customer default, and lender control showed grave hardship.

Severe financial hardship justified waiver of pre-deposit where the project had stopped, the sole customer had defaulted, lenders had taken control of the accounts, and imported goods and a bank guarantee were already in place. On those facts, insisting on pre-deposit of duty and penalty was considered likely to cause grave hardship, without any determination on the merits. Waiver was granted subject to the applicants not clearing the pending goods and keeping the bank guarantee alive during the appeal.

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Issues: Whether the duty and penalty pre-deposit should be waived on the ground of severe financial hardship.

Analysis: The applicants showed that the project had stopped, the sole customer had defaulted in payment, the lenders had taken control of the accounts, and substantial imported goods and a bank guarantee were already in place. On these facts, insistence on pre-deposit was found likely to cause grave financial hardship, without any adjudication on the merits.

Outcome: Pre-deposit of duty and penalty was waived, subject to the applicants not clearing the pending goods and keeping the bank guarantee alive during the pendency of the appeal.

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