Pre-deposit relief in advance licensing dispute: full waiver denied, but partial stay granted after balancing revenue and hardship.

Duty-free imports under the advance licensing scheme were found prima facie liable to duty because the attached export obligations remained unfulfilled even after the extended period. On that basis, full waiver of pre-deposit was declined. Considering the appellants' profit-making status and the need to balance hardship against the revenue's interest, only partial dispensation was granted, with a substantial deposit directed and stay of recovery for the balance pending appeal.

---

---

Issues: Whether the appellants were entitled to waiver of full pre-deposit of duty, interest, and penalty pending appeal.

Analysis: The goods had been imported duty free under the advance licensing scheme and the export obligations attached to the concession had not been fulfilled even up to the extended period. In these circumstances, the order demanding duty was found prima facie sustainable. At the same time, the appellants were shown to be a profit-making concern, and the total facts were considered for balancing hardship against the revenue's interest. The relief was therefore calibrated by directing only a substantial part-deposit and granting stay for the balance during pendency of the appeal.

Conclusion: Full waiver was declined, but partial dispensation of pre-deposit was granted by requiring deposit of Rs. 60 lakhs towards duty and Rs. 5 lakhs towards penalty, with stay of recovery of the balance pending appeal.

---