Waiver of duty pre-deposit allowed for unreleased confiscated goods, but penalty deposit was sustained for lack of prima facie compliance.

Where confiscated goods had not yet been redeemed and remained under customs control, a pre-deposit of duty was not warranted at the waiver stage, so the duty deposit was waived. On the penalty issue, the applicant had not shown, even prima facie, compliance with the exemption conditions and the claim of financial hardship was unsupported by records, so deposit of the penalty was directed. Relief was therefore limited to the duty pre-deposit, while the penalty requirement was sustained pending compliance.

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Issues: (i) Whether the applicant was required to deposit the duty demand at the waiver stage when the confiscated goods had not yet been redeemed; (ii) Whether the applicant was required to deposit the penalty amount.

Issue (i): Whether the applicant was required to deposit the duty demand at the waiver stage when the confiscated goods had not yet been redeemed.

Analysis: The goods had been confiscated and the option of redemption fine had not been exercised. In that situation, the goods remained under the control of the customs authorities, and the demand for pre-deposit of duty was not warranted at that stage.

Conclusion: The duty pre-deposit was waived in favour of the applicant.

Issue (ii): Whether the applicant was required to deposit the penalty amount.

Analysis: The applicant had not established, at least prima facie, compliance with the exemption conditions, and the plea of financial hardship was not supported by records. On that footing, deposit of the penalty amount was directed.

Conclusion: The penalty amount was required to be deposited against the applicant.

Final Conclusion: Relief was granted only in respect of the duty pre-deposit, while deposit of the penalty was sustained, and the matter was kept for compliance.

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