Pre-deposit waiver and financial hardship were tested at the interim stage, leading to only partial relief pending appeal.

At the interim stage, the Tribunal considered whether complete waiver of pre-deposit and stay of recovery should be granted pending appeal. It found only a limited prima facie case because the record did not clearly link the cartons to the integral fitments for full relief. It also rejected total financial hardship, noting the appellant's profit position and substantial reserves in the balance sheet. Complete waiver was therefore declined, and partial pre-deposit was ordered, with the balance duty and penalty stayed on compliance.

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

Analysis: The Tribunal confined itself to the question of waiver at the interim stage. It found only a limited prima facie basis in favour of the appellant and noted that the record did not establish a clear correlation between the cartons and the integral fitments for the purpose of granting full relief. The Tribunal also considered the financial position disclosed in the balance sheet and found that the appellant had earned profit and had substantial reserves, so the plea of financial hardship was not made out for total waiver.

Conclusion: Complete waiver was declined. The appellant was directed to deposit Rs. 25 lakhs towards the duty demand within two months, and on such deposit the balance duty and penalty were stayed.

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