Prima facie case for waiver of pre-deposit upheld where import was later regularised and warehousing conditions were satisfied.

A prima facie case for waiver of pre-deposit and stay of recovery was found in penalty proceedings under the Customs Act, 1962 because the only departmental objection was the absence of a Letter of Permission at the time of import. The import was later regularised by the Development Commissioner, the warehousing licence remained valid, and the goods were still within the warehousing period. On that basis, interim relief was justified and recovery of the adjudged dues was stayed pending appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit and stay of recovery in proceedings relating to penalty under the Customs Act, 1962.

Analysis: The only objection raised by the department was that the Letter of Permission was not available at the time of import of capital goods. The import was subsequently regularised by the Development Commissioner. The warehousing licence was valid and the goods were within the warehousing period. In these circumstances, the appellant had established a prima facie case for interim relief.

Conclusion: Waiver of pre-deposit was granted and recovery of the adjudged dues was stayed during the pendency of the appeal.

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