Pre-deposit waiver and stay of recovery granted where customs custody protected revenue and export-obligation breach required deeper scrutiny.

Complete waiver of pre-deposit was considered appropriate where the imported capital goods and indigenous goods were already in customs custody and their value was sufficient to safeguard revenue. The alleged breach of export obligation required examination of the record, so the appellants were treated as having established a case for interim protection. As a result, pre-deposit of customs duty, central excise duty and penalty was waived, recovery was stayed until disposal of the appeal, and the goods were not to be redeemed in the meantime.

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Issues: Whether the appellants were entitled to complete waiver of pre-deposit of customs duty, central excise duty and penalty, and stay of recovery pending disposal of the appeal.

Analysis: The imported capital goods and indigenous goods were already in the custody of the customs authorities, and their value was considered sufficient to safeguard the revenue's interest. The question whether the export obligation had in fact been breached required detailed examination of the record, and the appellants were treated as having made out a case for interim protection.

Outcome: Waiver of pre-deposit of the duty and penalty amounts was granted and recovery was stayed till disposal of the appeal, with the goods not to be redeemed meanwhile.

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