Prima facie case justified waiver of penalty deposit, but valuation stay and bank guarantee relief were declined.

A prima facie case supported waiver of penalty pre-deposit and stay of its recovery, because the value enhancement rested on a document that did not, on its face, appear sufficient to prove price. However, no prima facie basis was shown to stay operation of the adjudication order on valuation or to grant related relief on the bank guarantee, because comparative values from other Custom Houses were not shown to concern goods of the same type and quality. The penalty deposit was therefore waived and recovery stayed, while the broader stay request was declined.

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Issues: Whether deposit of the penalty could be waived and its recovery stayed; and whether operation of the adjudication order, including encashment of the bank guarantee, should be stayed pending appeal.

Analysis: On the material placed, a prima facie case was found for waiver of the penalty deposit and stay of its recovery, as the value enhancement was based on a document which did not, on its face, appear to be sufficient evidence of price. However, no prima facie basis was shown for staying the operation of the order on the valuation issue or for directing out-of-turn hearing, since the comparative values from other Custom Houses were not shown to relate to goods of the same type and quality.

Outcome: Deposit of the penalty was waived and its recovery stayed, while the request for stay of operation of the order and related relief regarding the bank guarantee was declined.

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