Pre-deposit waiver requires a prima facie case and hardship; partial relief granted, with penalty and interest stayed.

Waiver of pre-deposit was justified only to the extent supported by a prima facie case and demonstrated hardship; complete dispensation was refused because the appellant did not establish sufficient financial difficulty or full entitlement to relief. The record suggested possible error in the duty computation, including exclusion of exported raw materials and depreciation on capital goods, which supported partial interim protection. The appellant was therefore directed to deposit 50% of the duty demanded, while recovery of penalty and interest remained stayed pending disposal of the appeal.

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Issues: Whether the appellant was entitled to waiver of the entire pre-deposit demanded as a condition for hearing the appeal on merits, and whether the penalty and interest liabilities should remain stayed pending disposal of the appeal.

Analysis: The matter had earlier been remanded for decision on merits after opportunity of hearing. In the subsequent proceedings, the record showed that the appellant did not cooperate fully before the lower authority, but the impugned order also appeared to have proceeded without adequately reflecting exclusion of exported raw materials from the duty computation and without considering depreciation on capital goods. These features gave the appellant some prima facie entitlement to relief on pre-deposit. At the same time, the challenge did not establish a case for complete waiver, and proceedings before BIFR and other difficulties were held insufficient to show financial hardship justifying total dispensation with the statutory requirement.

Conclusion: The appellant was directed to deposit 50% of the duty demanded, and recovery of the penalty and interest was stayed pending disposal of the appeal.

Final Conclusion: The appellant obtained partial interim relief, but not complete waiver of the duty pre-deposit.

Ratio Decidendi: Waiver of pre-deposit may be granted only to the extent supported by a prima facie case and demonstrated hardship, and complete waiver is not warranted where such showing is incomplete.

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