Pre-deposit waiver in penalty disputes turns on prima facie evidence; unsupported recovery may justify full waiver, while stronger material limits relief.

Waiver of pre-deposit of penalties depended on the strength of the prima facie case and the material linking each applicant to alleged smuggling. In one case, an un-retracted statement and the record were treated as sufficient to decline full dispensation despite financial hardship, so partial deposit was required before balance waiver. In the other, recovery of household goods from the applicant's residence was held insufficient on the noted material to establish smuggling, and deposit was waived. The note illustrates that interim relief turns on the evidentiary basis against each applicant and not on hardship alone.

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Issues: Whether waiver of deposit of penalties was warranted in respect of the two applicants.

Analysis: One applicant was alleged to be concerned with smuggling of gold biscuits and the record noted an un-retracted statement and no sufficient basis to dispense with deposit in full, though financial hardship was pleaded. The other applicant was found to have a strong prima facie case, as the recovery of household goods from his house was not, on the material noted, enough to establish smuggling.

Conclusion: Waiver of deposit was granted to the second applicant, while the first applicant was directed to deposit Rs. 2 lakhs and was granted waiver of the balance on such deposit.

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