Pre-deposit waiver under customs law denied where prima facie illegality, no departmental control, and no financial hardship were shown.

Section 129E relief was considered on the basis of prima facie illegality in clearance, import licensing, valuation and transhipment compliance, and the absence of financial hardship. The goods were not treated as remaining under departmental control after the High Court's possession orders, so constructive custody was rejected for full dispensation. On that footing, complete waiver of pre-deposit of duty and penalties was denied, and only limited conditional relief was granted through partial pre-deposit for some applicants, with the balance stayed subject to compliance.

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Issues: Whether complete waiver of pre-deposit of duty and penalties should be granted under section 129E of the Customs Act, 1962, including whether the goods could be treated as under departmental control and whether the applicants had made out a prima facie case for full dispensation.

Analysis: The applicants had taken delivery of imported livestock without completing the required customs formalities, and the record disclosed prima facie violations concerning clearance, import licensing, valuation and transhipment-related requirements. The goods were not held to remain under the control of the Department after the High Court orders permitting the applicants to retain possession subject to restrictions, so the plea of constructive custody for purposes of section 129E was rejected. The Tribunal also noted that no financial hardship was shown. Considering the totality of circumstances, only partial relief could be granted, while the balance of duty and penalties would remain stayed subject to compliance with the ordered pre-deposit.

Conclusion: Complete waiver of pre-deposit was denied. Partial pre-deposit was directed for the firm, its managing partner and the clearing agent, while waiver was granted for the remaining applicants' penalties pending appeal.

Final Conclusion: The applications were only partly allowed, with limited pre-deposit relief and waiver of the balance subject to compliance and further hearing.

Ratio Decidendi: For dispensation under section 129E of the Customs Act, 1962, prima facie illegality in clearance, absence of departmental control over the goods, and absence of financial hardship justify refusal of full waiver and support only limited conditional relief.

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