Clandestine removal allegations led to conditional waiver of pre-deposit, with recovery stayed on payment of the directed amount.

Clandestine removal of processed fabrics without payment of duty was the central allegation, supported by vehicle interception and statements from employees and the driver admitting the modus operandi. The claim that part of the duty had already been paid was rejected because no supporting details were furnished. On that basis, a pre-deposit of Rs. 10 lakhs towards duty was directed within two months, and on compliance the balance duty and penalty were waived and recovery was stayed during the pendency of the case.

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Issues: Whether the appellants had made out a strong prima facie case for waiver of pre-deposit and stay of recovery of duty and penalty.

Analysis: The demand arose from alleged clandestine removal of processed fabrics without payment of duty, supported by interception of the vehicle and statements of employees and the driver admitting the modus operandi. The claim that some duty had already been paid was found unsupported for want of details.

Outcome: Pre-deposit of Rs. 10 lakhs towards duty was directed within two months, and on such deposit the balance duty and penalty stood waived and recovery stayed during the pendency of the case.

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