Conditional pre-deposit relief in excise dispute granted after weak prima facie challenge; balance demand stayed on deposit and guarantee.

Conditional waiver of pre-deposit and stay of recovery was granted where the Tribunal found no prima facie strength in the appellant's objections to the duty and penalty demand, including evidentiary challenge, reliance on material beyond the show cause notice, alleged non-consideration of pleas, and limitation. Interim relief was made subject to a partial cash deposit and bank guarantee, reflecting the appellant's financial condition. Compliance with these conditions secured waiver of the balance duty and penalty; failing compliance, the appeal would be liable to dismissal. The penalty imposed on the partner was waived.

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Issues: Whether waiver of pre-deposit and stay of recovery should be granted in respect of the duty and penalty demand, and whether any interim protection could be ordered pending the appeal.

Analysis: The Tribunal found no prima facie strength in the appellant's objections, including challenge to the demand on evidence, reliance on material beyond the show cause notice, non-consideration of the appellant's pleas, and limitation. Having regard to the overall facts and the financial condition of the appellant, the Tribunal accepted a conditional arrangement requiring partial cash deposit and partial security by bank guarantee as a basis for interim relief.

Outcome: Conditional waiver of the balance duty and penalty was granted on compliance with the specified pre-deposit and bank guarantee requirements, failing which the appeal would be liable to dismissal. The penalty imposed on the partner was waived.

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