Prima facie case justified waiver of penalty pre-deposit and stay of recovery in customs dispute.

A prima facie case for waiver of penalty pre-deposit was found where the appellant had ordered new engines, repudiated the goods after discovering irregular documents, instructed the bank to stop payment, and notified customs before the goods arrived. The appellant was also not seeking to claim or retrieve the goods. On these facts, recovery was stayed and the penalty pre-deposit was waived.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit of the penalty amount and stay of recovery pending disposal of the appeal.

Analysis: The appellant had stated that he had ordered new engines, had repudiated the goods upon learning that the documents were not in order, had instructed the bank to stop payment, and had informed the customs authorities before arrival of the goods. It was also noted that the appellant was not claiming or seeking to retrieve the goods. On these facts, a prima facie case in his favour was found.

Outcome: Stay of recovery was granted and waiver of the penalty pre-deposit was allowed.

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