Pre-deposit waiver and stay of penalty recovery granted where no personal role or gain was shown

Penalty was ordered against an appellant without attributing any personal role in the company's affairs and without showing any personal gain. Because the company was in liquidation and the department had already lodged its claim for duty and penalty in the liquidation proceedings, the facts supported dispensing with pre-deposit. The pre-deposit requirement for the penalty amount was therefore waived, and recovery of the penalty was stayed pending appeal.

---

---

Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery of the penalty pending appeal.

Analysis: The penalty order did not attribute any personal role to the appellant in looking after the affairs of the company, nor did it show any personal gain to him. The company had gone into liquidation and the department had already lodged its claim for duty and penalty in the liquidation proceedings. On these facts, a strong case was made out for dispensing with the pre-deposit requirement.

Conclusion: The requirement of pre-deposit of the penalty amount was waived and recovery thereof was stayed during the pendency of the appeal.

---