Pre-deposit under Customs law is mandatory in principle, and partial waiver may stand where undue hardship is not shown.

Pre-deposit under Section 129E of the Customs Act is mandatory in principle, and waiver is an exception available only on showing undue hardship. The Tribunal's discretion to waive or reduce deposit may be exercised wholly or partly on terms protecting revenue. Here, the Tribunal gave a reasoned order granting partial relief by fixing deposit at 25% of the penalty amount, and it could have refused waiver altogether. No ground was made out in writ jurisdiction to interfere with that discretionary exercise, so the conditional waiver was upheld.

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Issues: Whether the Tribunal's order directing pre-deposit of 25% of the penalty amount under Section 129E of the Customs Act, 1962 called for interference in writ jurisdiction.

Analysis: The requirement of pre-deposit under Section 129E is mandatory in principle, while dispensing with it is an exception available only when undue hardship is shown. The power to waive or reduce the deposit is discretionary and may be exercised wholly or partly on such terms as are necessary to safeguard revenue. The Tribunal had passed a reasoned order granting partial relief by limiting the deposit to 25% of the penalty amount, and it was open to it to refuse waiver altogether. No ground was made out to disturb that exercise of discretion.

Conclusion: The challenge to the Tribunal's conditional waiver failed and the order requiring deposit of 25% of the penalty amount was upheld.

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