Pre-deposit waiver for penalty granted where sworn financial hardship evidence remained unrebutted and appeal rights would be illusory.

Waiver of pre-deposit of penalty was allowed where the petitioner filed a sworn affidavit showing no business income, no taxable returns, no immovable property and no bank balance, and the Department produced no material to rebut those assertions. The Tribunal held that, on these facts, insisting on pre-deposit would cause undue hardship and would make the appeal right illusory. A cited precedent was found distinguishable, and relief was granted.

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Issues: Whether the petitioner was entitled to waiver of pre-deposit of the penalty amount on the ground of financial hardship and undue hardship.

Analysis: The Tribunal noted the sworn affidavit asserting that the petitioner had no business income, no taxable returns, no immovable property, and no bank balance, and observed that the Department produced no counter-affidavit or other material to controvert those assertions. It also took note of the earlier stay order granted in a similar matter involving identical goods and found the cited precedent distinguishable. On the facts placed before it, the Tribunal held that insisting on pre-deposit would cause undue hardship and that the appeal right should not be rendered illusory.

Conclusion: Waiver of pre-deposit of the penalty was granted in favour of the petitioner.

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