Pre-deposit waiver in duty disputes may be granted where escrow security adequately protects revenue pending appeal.

Further pre-deposit of duty, interest and penalty was waived in a dispute over denial of exemption, because the disputed amount had already been deposited in escrow and the revenue's interest was treated as adequately protected. The Tribunal followed the earlier High Court approach and held that no additional pre-deposit should be insisted upon when existing security sufficiently safeguards recovery. Recovery of the disputed sums was therefore stayed during pendency of the appeal, with interim protection granted to the assessee pending regular hearing.

---

---

Issues: Whether pre-deposit of duty, interest and penalty should be waived and recovery stayed pending disposal of the appeal.

Analysis: The appeal involved a claim for waiver of pre-deposit in a duty dispute arising from denial of exemption under the notification. The amount in dispute had already been deposited in an escrow account, and the earlier order of the Gauhati High Court had held that the revenue stood adequately protected and that no further pre-deposit should be insisted upon. Following that approach, the Tribunal treated the existing deposit as sufficient protection during pendency of the appeal.

Conclusion: Pre-deposit of duty, interest and penalty was waived and recovery of the same was stayed during pendency of the appeal.

Final Conclusion: The matter was kept pending for regular hearing, with interim protection granted to the assessee.

Ratio Decidendi: Where the disputed duty is already secured and the revenue's interest is adequately protected, further pre-deposit need not be insisted upon and recovery may be stayed pending appeal.

---