Pre-deposit waiver in clandestine removal dispute limited after prima facie case and hardship claim were found insufficient.

Complete waiver of pre-deposit was refused because the Department's reliance on packing slips, workmen's registers and invoices found in the factory created serious prima facie doubts about the demand based on alleged clandestine removal. The appellant's financial hardship was not accepted as sufficient, as the balance sheet did not establish grounds for full dispensation. The Tribunal therefore required a partial deposit and granted waiver and stay only for the balance duty and penalties after compliance.

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Issues: Whether the appellant was entitled to complete waiver of pre-deposit and stay of recovery in respect of the duty and penalties demanded, and whether the materials relied upon by the Department displaced the appellant's plea of financial hardship and prima facie weakness of the demand.

Analysis: The requested waiver was considered on the materials relating to alleged clandestine removal based on packing slips, workmen's registers and copies of invoices found in the factory, together with the appellant's plea of hardship. The grounds advanced for the demand were found to raise serious prima facie doubts against complete waiver. The financial position shown by the balance sheet did not establish sufficient hardship for full dispensation of deposit.

Outcome: Full waiver was declined. The appellant was directed to deposit Rs. 25 lakhs within two months, and on such deposit the remaining duty and penalty were waived and recovery stayed.

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