Pre-deposit relief under Section 35F was granted only partly, with recovery stayed after a specified cash deposit.

An application for dispensing with pre-deposit and staying recovery under Section 35F was considered on the rival submissions concerning duty and penalty. The Tribunal granted only partial relief, directing a substantial cash deposit as a condition for dispensing with the balance pre-deposit. On compliance with the specified deposit, recovery of the remaining duty and penalty was stayed pending disposal of the appeal.

---

---

Issues: Whether the application for dispensing with pre-deposit of duty and penalty and for stay of recovery should be allowed in full or only to a limited extent.

Analysis: The application was considered under Section 35F. The amount of duty and penalty was examined in the light of the rival submissions, and the Tribunal directed a substantial cash deposit while granting relief against the balance. On deposit of the specified amount, recovery of the remaining duty and penalty was stayed pending disposal of the appeal.

Conclusion: The application was allowed in part by requiring a cash deposit of Rs. 4 lakhs and dispensing with pre-deposit of the balance duty and penalty.

---