Pre-deposit waiver for duty rejected where BIFR registration alone did not prove inability to comply with the deposit direction.

Pre-deposit of duty was sought to be modified and fully waived on the basis of alleged financial deterioration and the company's registration before the BIFR. Mere pendency of a sickness reference was treated as insufficient to show inability to comply with the earlier stay direction requiring a deposit of Rs. 3 lakhs. The request for complete waiver was therefore rejected for want of sufficient grounds to dispense with the pre-deposit, although the time for compliance was extended by a further 8 weeks.

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Issues: Whether the requirement of pre-deposit of duty could be modified and dispensed with on the ground of alleged financial deterioration of the company and its registration before the BIFR.

Analysis: The application for modification was opposed on the ground that mere registration of the company's sickness application before the BIFR did not establish inability to make even the amount already directed to be deposited. The request for complete waiver of pre-deposit was considered against the earlier stay direction requiring a deposit of Rs. 3 lakhs.

Outcome: The request for modification was rejected, as no sufficient ground for dispensing with the pre-deposit was made out. Time for compliance was, however, extended by a further 8 weeks.

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