Pre-deposit waiver and stay granted where duty-free imported containers remained in Revenue custody pending re-export compliance.

Waiver of pre-deposit and stay of recovery were granted in an appeal concerning duty, interest and penalty on imported containers. The containers had been imported free of duty on an undertaking to re-export them within the stipulated period under the relevant notification. As the containers remained in the custody of the Revenue, the prima facie interest of the Revenue was treated as safeguarded for purposes of interim relief. On that basis, the entire pre-deposit was waived and recovery remained stayed during the pendency of the appeal.

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Issues: Whether waiver of pre-deposit of duty, interest and penalty and stay of recovery were justified pending appeal.

Analysis: The containers were imported free of duty on an undertaking to re-export them within the stipulated period under the relevant notification. As the containers remained in the custody of the Revenue, the prima facie interest of the Revenue was treated as safeguarded for the purpose of interim relief.

Conclusion: Waiver of pre-deposit of the entire duty, interest and penalty was granted and recovery was stayed during the pendency of the appeal.

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