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2006 (7) TMI 234 - HC - CustomsWaiver of pre dpeosit - deposit of duty and interest demanded or penalty levied - Undue financial hardship - HELD THAT:- If a strong prima facie case is made out, the requirement of pre-deposit would have to be waived irrespective of financial capacity of the appellant. If the appellant were to make out an arguable case for appeal, the pre-deposit might still be waived but on securing the interest of the Revenue. In the case of financial hardship pre-deposit the disputed duty and/or penalty and/or part thereof would have to be waived irrespective of the prima facie merits. When pre-deposit is waived, the appeal is heard on merits. If the appeal fails, the appellant would have to deposit the disputed duty and/or penalty with inter alia interest. It would always be open to the Appellate Authority to pass appropriate orders to protect the interest of revenue. On the other hand, if pre-deposit of duty and/or penalty is not waived, a meritorious appeal may be thrown out on the technical ground of inability to deposit the disputed duty and penalty as pre-condition for hearing of the appeal. The attention of the respondent Tribunal was drawn to the fact that the appellants were ordinary government servants with meagre salary, barely sufficient for the maintenance of the appellants and the members of their family. Even though the aforesaid submissions with regard to the financial capacity of the appellants have been recorded by the Respondent Tribunal, the Respondent Tribunal has cursorily recorded a finding that the contention of the appellants that they were not in a position to pay cannot be accepted. The Respondent Tribunal has further proceeded on the basis penalty of Rs. 5,000/- (sic) is not excessive. The aforesaid findings are not supported by any reasons. The impugned order is thus in flagrant violation of the principles of natural justice, and liable to be set aside and quashed. The impugned order is, therefore, set aside and quashed.
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