Pre-deposit waiver on prima facie theft of imported goods and a time-barred demand, with recovery stayed pending appeal

Waiver of pre-deposit was considered where duty and penalty arose from denial of Notification No. 77/80 due to alleged failure to fulfil export obligation. A prima facie case was found that the imported goods were stolen before they could be used in manufacture for export, and that the shortage was noticed only much later during stock taking. The plea that the demand was time-barred also found prima facie support. On that basis, pre-deposit of duty and penalty was dispensed with and recovery was stayed pending appeal.

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Issues: Whether waiver of pre-deposit of duty and penalty was warranted in the light of the alleged theft of imported goods, the plea of limitation, and the contention that the demand was without jurisdiction.

Analysis: The applicants were required to pre-deposit duty and penalty arising from denial of the benefit of Notification No. 77/80 on account of alleged non-fulfilment of export obligation. The record showed a prima facie case that the imported goods were stolen before they could be used in manufacture for export, and that the shortage was noticed in stock taking long after the alleged theft. Prima facie substance was also found in the plea that the demand was time-barred.

Conclusion: The requirement of pre-deposit of duty and penalty was dispensed with and recovery was stayed pending the appeal.

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