Pre-deposit waiver for penalty granted where full duty was already paid, with confiscation stayed pending appeal.

Pre-deposit of penalty was waived at the stay stage because the applicants had already paid the full duty before the adjudication concluded. On that basis, the penalty demand was treated as fit for interim relief, and the confiscation of plant and machinery was directed to remain in abeyance during the appeal. The order granted stay of the penalty and preserved the status quo on confiscation pending final disposal.

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Issues: Whether pre-deposit of the penalty and the confiscation order should be waived pending the appeal.

Analysis: The applicants had already deposited the full duty amount before culmination of the adjudication proceedings. In view of that deposit, the penalty demand was treated as fit for waiver at the stay stage, and the confiscation of plant and machinery was directed to remain in abeyance during pendency of the appeal.

Outcome: Pre-deposit of the penalty was dispensed with, stay was granted, and confiscation of plant and machinery was kept in abeyance during the appeal.

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