Pre-deposit relief in appeal granted after financial hardship and prima facie merits showed the original condition was excessive.

The pre-deposit condition in a pending appeal was found excessive in light of the appellant's pleaded financial hardship, which was not disputed, and the prima facie arguable merits of the challenge, including the contention that part of the demand was time-barred and that the imported items qualified for concessional duty. On the overall facts, the court modified the deposit requirement by reducing the cash component and permitting the balance to be secured through a bank guarantee or security, thereby easing the burden while preserving protection of the revenue.

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Issues: Whether the Tribunal's pre-deposit direction should be modified having regard to financial hardship and the prima facie merits of the appellant's challenge.

Analysis: The writ petition challenged only the quantum of pre-deposit ordered in the pending appeal. The Court took note of the petitioner's pleaded financial difficulty, which was not disputed by the department, and also considered that a substantial part of the demand was stated to be time-barred and that there was a prima facie arguable case on the nature of imported items and the claim to concessional duty. On the overall facts, the original condition was considered excessive.

Conclusion: The pre-deposit direction was modified by reducing the cash deposit to Rs. 25 lakhs and requiring a security or bank guarantee for Rs. 25 lakhs, in favour of the petitioner.

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