Pre-deposit in customs appeal reduced where circular-based relief and no alleged evasion justified balanced protection.

A customs appeal pre-deposit should be calibrated to preserve the appeal while balancing the interests of revenue and the appellant. Where there was no allegation of duty evasion or other disentitling conduct, the High Court treated the Board circular as a plausible basis for limited relief, even though the Tribunal had taken a different view of its applicability. The direction to deposit the entire duty was modified: the appellant was required to deposit 30% of the duty payable, excluding interest, and secure the balance to the satisfaction of the Assessing Officer.

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Issues: Whether the Tribunal was justified in directing deposit of the entire duty as a pre-condition for hearing the customs appeal, and whether the appellant was entitled to a reduced pre-deposit in light of the Board circular and the surrounding circumstances.

Analysis: The appellant was not alleged to have evaded duty or to have engaged in conduct disentitling it to limited relief. The Court noted that the Tribunal's view that the circular was inapplicable was plausible, but the circular also represented an alternative interpretation that could operate in the appellant's favour. The Court further took into account that the appellant had arranged its affairs on the basis of the circular and that the circumstances warranted balancing the interests of both sides while preserving the appeal.

Conclusion: The direction to deposit the entire duty was modified. The appellant was required to deposit 30% of the duty payable, excluding interest and the balance was to be secured to the satisfaction of the Assessing Officer. The relief was therefore granted partly in favour of the appellant.

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