Pre-deposit waiver and stay relief were limited where prima facie merits were weak but financial hardship justified partial protection.

Complete waiver of pre-deposit was refused where the demand arose from finalisation of classification and the classification merits were already pending in a separate appeal. The Tribunal found that no prima facie case for total waiver was made out, but it accepted financial hardship as the appellants had approached BIFR as a sick unit. Balancing these factors, it granted partial relief by directing a reduced pre-deposit and staying recovery of the balance duty and penalty pending appeal, subject to compliance with the deposit condition within the stipulated time.

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Issues: Whether the appellants were entitled to complete waiver of pre-deposit and stay of recovery pending the appeal.

Analysis: The demand arose from finalisation of classification and the merits of classification were already the subject matter of a separate appeal. On the merits, the appellants did not establish a prima facie case for total waiver. On the question of financial hardship, the appellants had approached the BIFR as a sick unit, which justified partial relief. Balancing the interests of justice, the Tribunal directed a reduced pre-deposit and dispensed with the balance duty and penalty upon compliance.

Conclusion: Complete waiver was refused, but partial waiver of pre-deposit was granted subject to deposit of Rs. 15 lakhs within the stipulated time, with stay of the balance demand and penalty pending appeal.

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