Pre-deposit waiver in an arguable dispute granted where factory closure showed hardship, subject to partial deposit.

In a stay application, the Tribunal treated the dispute as arguable and accepted the uncontroverted closure of the factory as a relevant hardship factor. On that basis, it granted interim relief by waiving the pre-deposit of penalty and partially waiving the pre-deposit of duty, while safeguarding revenue through a direction to deposit a specified sum within a fixed time. The operative effect was that the appellants obtained stay relief subject to compliance with the partial deposit condition.

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Issues: Whether, in the stay application, pre-deposit of the duty and penalty demanded from the appellants should be waived in view of the arguable nature of the dispute and the closure of the factory.

Analysis: The matter was found to be arguable. The factory was stated to be closed, and that assertion was not controverted. In these circumstances, the Tribunal considered it appropriate to grant relief on pre-deposit while protecting the revenue by directing a partial deposit within a fixed time. The requirement of pre-deposit of penalty was waived.

Conclusion: Pre-deposit of the amounts in dispute was waived subject to a deposit of Rs. 1,50,000 within eight weeks, and the pre-deposit of penalty was also waived.

Final Conclusion: Interim relief was granted to the appellants by partially waiving the pre-deposit requirement, while keeping the appeal subject to compliance with the directed deposit.

Ratio Decidendi: Where the dispute is arguable and the appellant shows a practical hardship such as closure of the unit, pre-deposit may be waived partially, subject to safeguarded conditions.

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