Pre-deposit waiver in customs dispute allowed where fire loss of goods showed a prima facie case for merits-based reconsideration.

A prima facie case for waiver of pre-deposit was found where the goods were said to have been destroyed in a fire after de-stuffing and the appellants denied negligence or involvement in the loss. On that basis, insistence on pre-deposit was not warranted, and the dispute was directed to be reconsidered on merits. The matter was therefore remanded for decision without requiring pre-deposit.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit under Section 129E of the Customs Act, 1962, and whether the matter should be remanded for decision on merits without insisting on such pre-deposit.

Analysis: The appellants relied on the destruction of the goods in a fire accident after de-stuffing and on the absence of negligence or involvement in the loss. The Tribunal found that these facts disclosed a prima facie case warranting waiver of the pre-deposit requirement. Since the Commissioner (Appeals) had not examined the dispute on merits, the matter required reconsideration without insisting on pre-deposit.

Conclusion: The waiver and stay application was allowed, the impugned order was set aside, and the matter was remanded for decision on merits without insisting on pre-deposit.

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