Financial hardship and BIFR rehabilitation can justify waiver of pre-deposit and stay of duty recovery pending appeal.

A sick industrial unit before the BIFR may obtain waiver of pre-deposit and stay of duty recovery where financial hardship is established and the excise liability is covered in the proposed rehabilitation scheme. The order noted that the Draft Rehabilitation Scheme specifically referred to the excise dues within the moratorium proposal, and treated the unit's sickness and pending rehabilitation proceedings as sufficient grounds to dispense with pre-deposit. Recovery of the duty amount was stayed pending disposal of the appeal.

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Issues: Whether the appellants were entitled to waiver of pre-deposit of the duty amount and stay of recovery during pendency of the appeal on the ground of sickness of the unit and the BIFR rehabilitation proceedings.

Analysis: The order noted that the BIFR had specifically referred to the excise liability in the proposed moratorium under the Draft Rehabilitation Scheme. It also applied the principle that financial hardship can justify dispensing with pre-deposit where the applicant is a sick unit before the BIFR.

Outcome: The pre-deposit was waived and recovery of the duty amount was stayed till disposal of the appeal.

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