Partial waiver of penalty granted where export realisation was largely complete and financial hardship supported interim relief.

Partial waiver of penalty and stay of recovery may be justified where most export proceeds have been realised, only a small balance remains outstanding, and documentary efforts show attempts to secure remittance through banks and the Indian High Commission. Weak financial condition, including continuing losses and near-closure of business, supported prima facie relief at the interim stage. The Tribunal granted partial waiver and stayed recovery of the penalty on the condition that 15% of the penalty be deposited and a bank guarantee be furnished for the remaining 85%.

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Issues: Whether the appellants had made out a prima facie case for partial waiver of penalty and stay of recovery pending disposal of the appeals.

Analysis: The record showed that most of the export proceeds had been realized and only a small balance remained outstanding. The appellants had produced bank certificates and correspondence with banks and the Indian High Commission to show efforts made for realization. Their financial position was also weak, with material indicating continuing losses and near-closure of business. In these circumstances, the Tribunal found a prima facie case for granting partial relief at the stage of stay and waiver.

Conclusion: The appellants were held entitled to partial waiver, and recovery of the penalty was stayed subject to deposit of 15% of the penalty and furnishing bank guarantee for the balance 85%.

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