Waiver of pre-deposit granted on financial hardship and public-sector character; recovery stayed pending appeal.

Pre-deposit of duty and penalty was waived where the appellants showed financial difficulty, limited manufacturing scale, and inability to market the goods successfully, and where they were State Government undertakings promoting electronic goods in backward hill areas. The subsisting bond already executed and kept alive also supported relief. On these facts, the tribunal treated the case as fit for waiver of pre-deposit and stayed recovery until disposal of the appeal.

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Issues: Whether pre-deposit of the duty and penalty amounts should be waived and recovery stayed pending disposal of the appeal in view of the appellants' financial difficulty and their status as State Government undertakings.

Analysis: The appellants' inability to market the goods successfully, the restricted scale of their manufacturing activity, their status as State Government undertakings engaged in promoting electronic goods in backward hill areas, and the subsisting bond already executed and kept alive were taken into account. On these considerations, the matter was treated as fit for waiver of pre-deposit.

Outcome: Pre-deposit of the duty and penalty was dispensed with and recovery was stayed till disposal of the appeal.

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