Pre-deposit waiver granted where existing recovery secured disputed duty and penalty pending appeal.

Waiver of pre-deposit was granted for the balance duty and penalty demand because the dispute concerned alleged non-fulfilment of export obligations and non-use of imported consumables. The amount already encashed by the Revenue was treated as sufficient security for the disputed dues at the interim stage, so no further coercive recovery was considered necessary pending disposal of the appeal. Coercive recovery of the balance demand was therefore stayed until the appeal is decided.

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Issues: Whether waiver of pre-deposit of the balance duty and penalty demand was justified pending disposal of the appeal.

Analysis: The demand arose from alleged non-fulfilment of export obligations and the non-use of some imported consumables. The amount already encashed by the Revenue was found sufficient to secure the disputed dues at the interim stage, and no further coercive recovery was considered necessary until the appeal was decided.

Conclusion: Complete waiver of pre-deposit of the balance amount demanded was granted, and coercive recovery was stayed till disposal of the appeal.

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