Clandestine removal allegations failed for lack of corroboration, and unconditional waiver of pre-deposit was granted.

Unconditional waiver of pre-deposit was granted where allegations of clandestine manufacture and removal of railway bogies and wagon components rested only on entries in a private diary. The appellants explained the entries as a production and clearance plan, and the record showed supplies to government railway buyers. In the absence of independent evidence of unaccounted raw material purchases, clandestine clearances, or corroborative customer statements, the tribunal found a strong prima facie case for relief and allowed the stay petition.

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Issues: Whether the appellants were entitled to unconditional waiver of pre-deposit in view of the material on record and the explanation offered for the entries in the seized private diary.

Analysis: The demand arose from allegations of clandestine manufacture and removal of railway bogies and wagon components. The only material relied upon was entries in a private diary, which the appellants explained as a plan for manufacture and clearance. The record showed that the goods were made for government railway buyers, and there was no independent evidence of unaccounted purchase of raw materials, clandestine clearances, or corroborative statements from customers. On that basis, the appellants were found to have established a good prima facie case for relief from pre-deposit.

Conclusion: The appellants were entitled to unconditional waiver of pre-deposit and the stay petition was allowed.

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