Pre-deposit waiver in duty dispute: partial deposit ordered, with recovery of the balance stayed during appeal.

Waiver of balance pre-deposit was sought in an appeal against duty and penalty. The CESTAT recorded a prima facie view that the exemption notification did not apply to the goods, but also considered the assessee's cum-duty price plea and the estimated duty liability. On that basis, it refused complete waiver, directed a partial deposit, and stayed recovery of the remaining duty and penalty until disposal of the appeal.

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Issues: Whether the appellants were entitled to waiver of the balance pre-deposit of duty and penalty pending the appeal.

Analysis: The Tribunal recorded a prima facie view that the exemption notification was not applicable to the goods in question. At the same time, it took note of the plea based on cum-duty price and the estimated duty liability placed before it. On that basis, it directed a partial deposit and granted waiver of the balance duty and penalty, with stay of recovery pending disposal of the appeal.

Conclusion: The request for complete waiver was rejected, but partial waiver was granted by directing deposit of Rs. 10,00,000/- and staying recovery of the balance.

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