Pre-deposit waiver for export-oriented unit sustained where goods were prima facie used in exported manufacture under prior permission.

A 100% export-oriented unit faced a demand for duty, interest and penalty on alleged illicit removal of goods, along with a connected penalty on its vice-president. On the interim record, the goods were prima facie shown to have been used in manufacturing exported ballot boxes under prior permission, and the export character of the final goods was not disputed. In that factual setting, the demand and penalties were found not to justify pre-deposit at that stage. Full waiver of pre-deposit was granted and recovery was stayed pending disposal of the appeals.

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Issues: Whether the appellants were liable to pre-deposit the confirmed duty, interest and penalty arising from alleged illicit removal of goods by a 100% export oriented unit, and whether the connected penalty on the vice-president could be sustained at the interim stage.

Outcome: The goods were prima facie shown to have been used in the manufacture of exported ballot boxes under prior permission, and the exported character of the final goods was not disputed. In that view, the demand, interest and penalties were held not to warrant pre-deposit at this stage.

Final Conclusion: Full waiver of pre-deposit was granted and recovery was stayed pending disposal of the appeals.

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