Clandestine removal allegations and parallel invoices led to denial of full predeposit waiver, with only partial interim relief granted.

In an appeal involving alleged clandestine removal of yarn, the record indicated clearance of cheese yarn in the guise of exempted plain reel hank yarn through parallel invoices and other documentary material. On that basis, the tribunal found that a full waiver of predeposit was not justified at the interim stage because the matter required closer examination on the available evidence. Complete waiver of duty, interest and penalty predeposit was therefore refused, while partial relief was granted by directing a further deposit and waiving the balance until disposal of the appeal.

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Issues: Whether the appellant made out a prima facie case for complete waiver of predeposit of duty, interest and penalty in an appeal concerning alleged clandestine clearances of yarn.

Analysis: The appellant was found to have cleared cheese yarn in the guise of plain reel hank yarn through parallel invoices, and the annexure to the show cause notice recorded the relevant invoices. The record indicated removal of dutiable yarn on cheese and cones without payment of duty under the guise of exempted plain reel hank yarn. In these circumstances, the matter required detailed examination at the appeal stage, and complete waiver could not be granted on the material then available.

Conclusion: The appellant failed to establish a prima facie case for complete waiver of predeposit. A further deposit of Rs. 5,00,000 was directed, and waiver of the balance predeposit was granted till disposal of the appeal.

Final Conclusion: Interim relief was granted only in part, and the appeal was permitted to proceed subject to the directed deposit.

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