Penalty pre-deposit waived where no specific intent to evade duty was alleged and duty had already been paid voluntarily.

Penalty pre-deposit was waived and recovery proceedings were stayed where the show cause notice did not allege any specific intent to evade duty, the duty had already been paid voluntarily, and the dispute over the description of the imported goods remained pending. On that basis, a prima facie case was found in favour of the applicant on the penalty issue, justifying interim relief during the appeal.

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Issues: Whether the penalty pre-deposit and recovery proceedings should be stayed in the absence of a specific allegation of intent to evade duty and in view of the duty having been paid voluntarily.

Analysis: The order notes that the show cause notice did not contain a specific charge of intention to evade duty. It also records that the duty had already been paid voluntarily. In these circumstances, and pending examination of the dispute over the description of the imported goods, the authority found a prima facie case in favour of the applicant on the penalty issue.

Outcome: Penalty pre-deposit was waived and recovery proceedings were stayed during pendency of the appeal.

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