Pre-deposit waiver in a stay petition was granted on arguable merits and demonstrated financial hardship, with seized goods retained in custody.

Unconditional waiver of pre-deposit of duty and penalty was considered in a stay petition where the merits were arguable on both sides. Financial hardship was inferred from the existence of seized goods of substantial value lying in departmental custody, while the revenue's interest was protected by retaining that custody. On that basis, waiver of pre-deposit was granted subject to continued departmental custody of the seized goods.

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Issues: Whether unconditional waiver of pre-deposit of duty and penalty was warranted in the stay petition.

Analysis: The matter on merits was found arguable from both sides. The existence of seized goods of substantial value lying in departmental custody was treated as sufficient to show financial hardship to the appellant, while also safeguarding the revenue's interest through continued custody of the seized goods.

Conclusion: Waiver of pre-deposit of the duty and penalty was granted subject to continued custody of the seized goods by the Department.

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