Pre-deposit waiver in excise appeals granted partly, with hardship and prima facie case supporting stay of recovery conditions.

The Tribunal considered stay applications seeking waiver of pre-deposit of duty and penalty on the basis of a prima facie case, financial hardship, marketability and limitation. It found that insisting on full pre-deposit would cause hardship and granted relief against pre-deposit in part. In one matter, the penalty was fully waived during pendency of the appeal and recovery was directed not to be pursued. In the other, pre-deposit of duty and penalty was dispensed with subject to a partial cash deposit and a bank guarantee, with recovery stayed during the appeals.

---

---

Issues: Whether pre-deposit of duty and penalty should be waived or dispensed with in view of the prima facie case, financial hardship, and the stay applications.

Analysis: The Tribunal considered the submissions on marketability, limitation, and hardship, and noted the competing authorities relied upon by both sides. It found that requiring full pre-deposit would cause hardship. For one appellant, the penalty amount was fully waived during pendency of the appeal with a direction that recovery proceedings not be pursued. For the other appellant, pre-deposit of duty and penalty was dispensed with subject to a partial cash deposit and bank guarantee.

Conclusion: Relief against pre-deposit was granted in part, with stay of recovery during the pendency of the appeals, subject to conditions in one matter.

---