Waiver of pre-deposit for detained export goods granted where Customs held the goods and the export bond remained in force.

Waiver of pre-deposit under Section 35F was considered appropriate because the export goods were in Customs custody, having been detained and confiscated, and were not under the Central Excise Department's control. Since the export bond remained alive, immediate recovery was treated as unwarranted, and discretion could be exercised to extend time on conditions. The relief was granted, with recovery stayed during the appeal on terms that the export bond be kept in force or a fresh bond furnished if expired.

---

---

Issues: Whether the appellants were entitled to waiver of pre-deposit of duty and stay of recovery pending appeal, having regard to the fact that the export goods were detained and confiscated by Customs and the export bond remained alive.

Analysis: The relief under Section 35F was considered unnecessary where the goods were not within the control of the Central Excise Department but were in the custody of Customs. The goods had admittedly not been exported because they were detained and later confiscated by Customs, and the export bond furnished to the Excise Department was stated to be still in force. In these circumstances, requiring immediate pre-deposit or recovery was held to be unwarranted, and the Collector could have exercised discretion to extend time subject to conditions.

Conclusion: Waiver of pre-deposit was granted and recovery was stayed during pendency of the appeal, subject to the export bond being kept alive and in full force, or a fresh bond being furnished if it had expired.

---