Pre-deposit waiver in foreign currency seizure case denied on prima facie hardship grounds; partial stay granted on deposit.

Complete waiver of pre-deposit and stay of recovery were sought in a penalty matter arising from seizure of foreign currency, supported by a plea of financial hardship and retraction of statements. At the waiver stage, the tribunal held that it could not finally determine whether the statements were voluntary or whether the currency belonged to the applicant, and the financial hardship plea was therefore not accepted prima facie. Complete waiver was declined, but partial relief was granted: the applicant was directed to deposit Rs. 3.00 lakhs within two months, and on such deposit the balance penalty stood waived and recovery stayed.

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Issues: Whether the applicant was entitled to complete waiver of the pre-deposit and stay of recovery of the penalty amount in view of the seizure of foreign currency and the plea of financial hardship.

Analysis: The applicant admitted recovery of the foreign currency but relied on financial hardship and the retraction of statements said to implicate him. At the stage of waiver, it was not possible to determine whether the statements were voluntary or whether the currency did not belong to the applicant. On that basis, the plea of financial hardship was not accepted prima facie.

Conclusion: Complete waiver was declined. The applicant was directed to deposit Rs. 3.00 lakhs within two months, and on such deposit the balance penalty was waived and recovery stayed.

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