Pre-deposit waiver for financial hardship accepted on proof of losses and sick-unit status, with recovery stayed pending appeal.

Waiver of pre-deposit was granted where the appellant showed substantial losses in its annual report and relied on sick-unit status recognised by the Board of Industrial Reconstruction. On that material, the financial hardship claim was accepted for the stay request, and insisting on deposit of the duty amount was treated as likely to cause undue hardship. The appeal was therefore entertained without pre-deposit, and coercive recovery was restrained until further orders.

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Issues: Whether the appellant was entitled to waiver of pre-deposit of the duty amount and interim protection against recovery on the ground of heavy financial loss and sick-unit status.

Analysis: The appellant produced the annual report showing substantial loss and relied on the declaration of sick-unit status by the Board of Industrial Reconstruction. On that material, the financial position was accepted for deciding the stay request. Requiring deposit of the duty amount was held likely to cause undue financial hardship.

Outcome: The condition of pre-deposit was waived for the purpose of entertaining the appeal, and coercive recovery was restrained until further orders.

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