Pre-deposit waiver and stay granted where a strong prima facie case and revenue protection favoured the appellants.

Complete waiver of pre-deposit of duty and penalty was granted, and recovery was stayed pending appeal, because the record showed a strong prima facie case in favour of the appellants. The unit had exported goods and sought debonding, while closure and export-obligation issues remained pending before the competent authority. The customs authorities had not shown a definite conclusion by the Development Commissioner, and the departmental letter relied on required duty confirmation only after such conclusion. Balance of convenience and equity favoured the appellants, and the confiscation of imported and indigenous capital goods and raw materials was treated as sufficient protection for the revenue.

---

---

Issues: Whether the appellants were entitled to complete waiver of pre-deposit of the duty and penalty amounts and stay of recovery pending disposal of the appeal.

Analysis: The appellants had exported goods during the relevant years and had sought debonding of the unit, while the matter relating to closure and export obligation was stated to be pending before the competent authority. The order also noted that the customs authorities had not shown that the Development Commissioner had reached a definite conclusion, though the departmental letter relied upon required confirmation of duty only after such conclusion. In these circumstances, the materials on record indicated a strong prima facie case, and the balance of convenience and equity were found to favour the appellants. The fact that the imported and indigenous capital goods and raw materials already stood confiscated was also taken as protecting the revenue interest.

Conclusion: Complete waiver of pre-deposit of the duty and penalty amounts was granted, and recovery was stayed till disposal of the appeal.

---