Pre-deposit and stay relief in customs appeal granted only on partial deposit and compliance with interim conditions.

Interim protection in customs appeal depended on a weak prima facie case, but the applicants' financial condition and closure of the factory were still relevant to the pre-deposit request. The applicants were required to deposit a specified sum within six weeks; on compliance, recovery of the balance duty was stayed during pendency of the appeal. Failure to comply would automatically vacate the stay order and expose the appeal to dismissal without further notice.

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Issues: Whether the applicants were entitled to waiver of pre-deposit and stay of recovery of the duty demand during the pendency of the appeal.

Analysis: The applicants were found not to have made out a strong prima facie case, but the financial condition and closure of the factory were taken into account while considering interim protection.

Outcome: The applicants were directed to deposit Rs. 2 lakhs within six weeks. On compliance, recovery of the balance duty was stayed during the pendency of the appeal, and non-compliance would vacate the order and expose the appeal to dismissal without further notice.

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