Undue hardship can justify conditional waiver of pre-deposit and stay of recovery pending appeal in appellate proceedings.

In a customs appellate matter, the Tribunal considered whether pre-deposit of penalty could be waived on grounds of undue hardship and whether recovery could be stayed pending appeal. It held that interim relief was available as incidental and ancillary to its appellate jurisdiction, and accepted a conditional arrangement requiring partial cash deposit and a bank guarantee for the balance. Subject to compliance within the time fixed, the recovery order was not to be pursued during the pendency of the appeal, and the pre-deposit requirement was dispensed with on those terms.

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Issues: Whether pre-deposit of the penalty could be dispensed with on the ground of undue hardship; whether stay of recovery proceedings and the recovery order could be granted pending appeal; and whether the Tribunal had power to grant such interim relief as incidental and ancillary to its appellate jurisdiction.

Analysis: The Tribunal found that the case involved undue hardship. It accepted a conditional arrangement of partial cash deposit and bank guarantee for the balance, and relied on the Tribunal's incidental and ancillary power to grant stay pending appeal. On that basis, it directed that the recovery order would not be pursued during the pendency of the appeal, subject to compliance with the stipulated terms within the time fixed.

Outcome: Pre-deposit of the penalty was dispensed with subject to partial cash deposit and bank guarantee, and stay of the recovery order was granted during the pendency of the appeal.

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