Pre-deposit condition may be flexibly modified when attached property secures revenue and appeal restoration can proceed on merits.

A pre-deposit condition for restoration of appeals may be modified where revenue dues are substantially secured by attachment of immovable property and partial payment has already been made. The Court balanced recovery interests against the need to hear the appeals on merits and granted only limited relief: the petitioners were allowed to raise a loan against the attached property and deposit the remaining amount within the stipulated time, after which the appeals would be restored. The attachment was preserved until the appeals were heard and decided on merits, reflecting a restricted, justice-oriented modification rather than full waiver of the security requirement.

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Issues: Whether the earlier order requiring deposit of the remaining amount as a condition for restoration of the appeals should be modified in view of the attachment of immovable property, partial payment already made, and the need to secure the revenue.

Analysis: The petitioners sought substitution of the cash-deposit condition by permitting the attached property to be offered as security and by allowing the appeals to be restored. The material placed before the Court showed that the departmental authorities had taken steps for recovery, including issuance of demand notices and attachment of immovable property under the customs recovery machinery. The Court also noted that the property attached was of substantial value, that part of the amount had already been paid, and that similar matters had been dealt with by the Tribunal and the Supreme Court with some indulgence. Balancing the interest of revenue recovery with the need to permit the appeals to be heard on merits, the Court modified the earlier order in a limited manner.

Conclusion: The modification was granted in part. The petitioners were permitted to raise a loan against the attached property and deposit Rs.55 lakhs with the Excise Department within the stipulated time, after which the appeals would stand restored and be decided on merits.

Final Conclusion: The application was disposed of with a limited modification of the pre-deposit condition, preserving the attachment until the appeals were heard and decided.

Ratio Decidendi: Where revenue dues are substantially secured by attachment of property and partial compliance has already been made, the Court may in the interest of justice grant limited modification of a pre-deposit condition to enable restoration and adjudication of the appeal on merits.

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