Pre-deposit relief in customs appeal where classification and limitation were contestable, with balance duty and penalty waived pending hearing.

In interim appeal proceedings, the Tribunal treated the classification and limitation disputes as contestable and balanced the competing interests by ordering a partial pre-deposit. Taking account of the confiscated goods already lying with the department, it directed deposit of a specified sum toward duty within one month and waived the remaining duty and penalty pending regular hearing, subject to compliance.

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Issues: Whether, in the appeal proceedings, the appellants should be directed to make a pre-deposit of duty pending final hearing.

Analysis: The issues on classification and limitation were found to be contestable at the interim stage. Taking into account the value of the confiscated goods already lying with the department, the Tribunal considered it appropriate to balance the competing claims by requiring a partial deposit while waiving the remainder of the duty and penalty pending compliance.

Conclusion: The appellants were directed to pre-deposit Rs. 50 lakhs towards duty within one month, and on such compliance the balance duty and penalty were waived pending regular hearing.

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