Pre-deposit condition for appeal admission modified: duty deposit maintained, penalty deposit waived, and merits hearing directed.

The High Court modified a pre-deposit condition imposed for admission of an appeal by retaining the requirement to deposit duty while dispensing with pre-deposit of penalty. The appeal was to be admitted on payment of duty alone and then heard on merits expeditiously. The decision reflects a discretionary modification of the admission condition based on the facts and circumstances, rather than complete waiver of the statutory deposit requirement.

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Issues: Whether the appellate authority's direction requiring pre-deposit of duty and penalty as a condition for admission of the appeal was liable to be modified.

Analysis: The petitioner challenged the condition of pre-deposit imposed for admission of the appeal. Considering the facts and circumstances, the Court found it to modify the order by retaining the requirement of deposit only of the duty amount and dispensing with the pre-deposit of penalty. The appeal was directed to be admitted on deposit of duty alone, and thereafter heard on merits expeditiously.

Conclusion: The pre-deposit condition was modified in favour of the petitioner to the extent that penalty deposit was dispensed with, while deposit of duty was maintained.

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