Pre-deposit waiver and stay of recovery in customs dispute, subject to safeguard against disposal of fixed assets.

Waiver of pre-deposit on account of the appellants' financial hardship was treated as operating as a stay against recovery pending appeal, so recovery of the disputed customs dues was restrained. The relief was made conditional on the appellants not alienating or disposing of their fixed assets, including plant and machinery, and the appeal was directed to be heard out of turn.

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Issues: Whether recovery of the disputed customs dues should be stayed during pendency of the appeal, and whether such relief should be made conditional on the appellants not disposing of their fixed assets.

Analysis: The order recorded that pre-deposit had earlier been dispensed with on account of the appellants' poor financial position, but no stay of recovery had been granted. Following the cited High Court view that waiver of pre-deposit could operate as a stay against recovery, the Tribunal found that recovery ought to be restrained pending appeal. The Tribunal also accepted the requested safeguard that the appellants should not alienate or dispose of their fixed assets, including plant and machinery.

Outcome: Recovery of the disputed dues was stayed during the pendency of the appeal, subject to the condition against alienation or disposal of fixed assets, and the appeal was directed to be heard out of turn.

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