MRP-based valuation and suspected misdeclaration justified denial of complete waiver, with only partial pre-deposit granted.

In a customs duty dispute on MRP-based valuation, the Tribunal assessed the waiver request on a prima facie basis and noted that the assessee had accepted a FIFO method requiring bill of entry-wise correlation. It also recorded material suggesting possible misdeclaration of the MRP shown in the bills of entry against the MRP used at sale, and found no demonstrated financial hardship. On that basis, the Tribunal held that complete waiver of pre-deposit was not warranted at that stage and directed a partial pre-deposit before recovery could be stayed.

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Issues: Whether the applicants had made out a case for complete waiver of pre-deposit and stay of recovery in a customs duty dispute involving MRP-based valuation and alleged misdeclaration.

Analysis: The application was considered on a prima facie basis. The Tribunal noted that the goods were subject to MRP-based valuation under the relevant statutory scheme, that the assessee had agreed to the FIFO method requiring bill of entry-wise correlation, and that there was material indicating possible misdeclaration of the MRP declared in the bills of entry vis-a -vis the MRP adopted at the time of sale. The Tribunal further observed that the record did not show financial hardship and that the assessee had not established a case warranting complete waiver of the adjudged dues at this stage.

Outcome: Complete waiver of pre-deposit and stay of recovery were declined, and the applicants were directed to make a partial pre-deposit of Rs. 50,00,000 within four weeks.

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