Denial of cross-examination supported waiver of pre-deposit and stay at the interim stage in a customs penalty dispute.

Denial of cross-examination of the seizing officer, without recorded reasons, was treated as a factor supporting a prima facie case for interim relief in a customs penalty matter. On that basis, the applicant obtained waiver of pre-deposit and absolute stay pending disposal of the appeal. The merits of the allegations and surrounding facts were left to be examined in the appeal proper, but the absence of a reasoned refusal to allow cross-examination was viewed as engaging fairness and natural justice at the stay stage.

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Issues: Whether pre-deposit of the penalty was liable to be waived and stay granted on the ground that the applicant had made out a prima facie case, particularly in view of denial of cross-examination of the seizing officer and the alleged breach of natural justice.

Analysis: The applicant's request to cross-examine the seizing officer, who had recorded the statement under Section 108 of the Customs Act, was not allowed and the order did not disclose any reason for refusing such cross-examination. In the circumstances, and having regard to the reliance placed on the principle that denial of an opportunity to test such evidence may affect fairness of the proceedings, the applicant was found to have established a prima facie case at the interim stage. The merits of the allegations and surrounding circumstances were left for consideration in the appeal proper.

Conclusion: The pre-deposit of penalty was waived and absolute stay was granted in favour of the applicant pending disposal of the appeal.

Final Conclusion: Interim relief was granted to the applicant, and the appeal was directed to proceed in due course without insisting on pre-deposit of the penalty.

Ratio Decidendi: Where a request for cross-examination of the seizing officer is denied without recorded reasons, a prima facie case for waiver of pre-deposit and stay may be made out at the interim stage.

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