Pre-deposit waiver in penalty dispute: partial deposit ordered after prima facie valuation of disputed imported machinery.

Waiver of pre-deposit in a penalty dispute over alleged contravention in importing second-hand machinery was considered on interim relief principles. The Tribunal found no strong prima facie case for complete waiver at that stage, but it took the apparent FOB value of the disputed consignment, added freight and insurance, and treated the effective value as about Rs. 3 lakhs for interim purposes. On that basis, it directed a limited deposit, granted waiver of the balance penalty, and stayed recovery pending disposal of the appeal.

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Issues: Whether the applicants were entitled to waiver of pre-deposit of the penalty pending disposal of the appeal, and whether a partial deposit should be directed on the basis of the prima facie valuation of the disputed goods.

Analysis: The application arose from a penalty imposed for alleged contravention in importing second-hand machinery by fictitious or non-existent firms and for alleged breach of the import control regime. The Tribunal found that the applicants had not established a strong prima facie case on merits for complete waiver at this stage. At the same time, the Tribunal considered the apparent FOB value of the disputed consignment and, after adding freight and insurance, treated the effective value as approximately Rs. 3 lakhs for the purpose of interim relief. In that context, it directed a limited deposit and granted waiver of the balance penalty with stay of recovery pending disposal of the appeal.

Conclusion: The request for complete waiver was declined, but the applicants obtained partial interim relief by being required to deposit only Rs. 3 lakhs and securing waiver and stay of the remaining penalty.

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