Prima facie strength from later precedent justified replacing cash pre-deposit with a personal bond and staying duty recovery.

An interim pre-deposit order in a customs matter was modified where a later Supreme Court ruling strengthened the assessee's prima facie case on merits, particularly on the issue whether a mere identifying monogram makes goods branded. The earlier cash deposit condition was replaced by a personal bond for the duty amount, to be furnished within four weeks and complied with within five weeks. On compliance, recovery of the duty amount would remain stayed, and the modification operated in favour of the assessee.

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Issues: Whether the interim direction requiring cash deposit of duty amount should be modified by accepting a personal bond and granting stay of recovery.

Analysis: The prior interim order had proceeded on a prima facie view that part of the demand was time-barred, while requiring a cash deposit for the remaining demand. In the present application, the Court took into account the later Supreme Court ruling that a mere identifying monogram does not make the goods branded, and treated that ruling as strengthening the applicants' prima facie case on merits. On that basis, the Court considered modification of the earlier deposit condition appropriate.

Conclusion: The applicants were directed to furnish a personal bond covering the duty amount within four weeks and to report compliance within five weeks, upon which stay and waiver of recovery of the duty amount would operate. The earlier cash deposit condition was modified in favour of the assessee.

Final Conclusion: The interim pre-deposit requirement was replaced by a personal bond, and recovery of duty was stayed on compliance.

Ratio Decidendi: Where a later authoritative ruling materially strengthens the assessee's prima facie case, an interim pre-deposit order may be modified by substituting a personal bond and granting stay of recovery.

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