Pre-deposit waiver granted where licence clubbing and export obligation issues were not properly examined, avoiding undue hardship.

Waiver of pre-deposit was granted pending disposal of the appeals because the applications raised common questions of law and fact and a prima facie review showed incomplete consideration of the clubbing of licences issued by the competent authorities. The record also indicated that the finding on alleged non-fulfilment of export obligation did not examine the nature of the exported goods or how the conditions of Notification No. 43/2002-Cus. were said to have been breached. In these circumstances, insisting on pre-deposit was considered likely to cause undue hardship, and waiver was found not to prejudice the Revenue.

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Issues: Whether the applicants were entitled to waiver of pre-deposit pending disposal of the appeals.

Analysis: The applications arose from common questions of law and facts. The record showed, on a prima facie view, that the aspect of clubbing of licences granted by the competent authorities had not been properly considered, and the finding on non-fulfilment of export obligation did not examine the nature of the exported goods or the manner in which the relevant conditions of Notification No. 43/2002-Cus. dated 19-4-2002 were said to have been violated. In these circumstances, insistence on pre-deposit was found likely to cause undue hardship, while waiver would not prejudice the Revenue.

Conclusion: The applicants were entitled to waiver of pre-deposit and the applications were allowed.

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