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Issues:
Stay application against dismissal of appeal for non-predeposit under Customs Act - Financial distress of appellants - Prima facie case on merits - Non-compliance with Notification terms - Request for full waiver - Pre-deposit amount determination - Appeal remanded for de novo consideration. Analysis: 1. The stay application was filed against the dismissal of the appeal by the Commissioner (Appeals) for not pre-depositing the required amount under Section 129E of the Customs Act. The appellants had failed to comply with the terms of the order, leading to the dismissal of the appeal for non-compliance. 2. The counsel for the appellants argued that the company was facing financial distress, with no funds in their accounts, and emphasized a strong prima facie case on merits. The Department initiated proceedings due to alleged non-fulfillment of Notification terms regarding export of leather garments, resulting in a demand for duty on duty-free imports. The request was made for a full waiver and remand for de novo consideration. 3. The Revenue opposed the waiver request, highlighting the existence of export orders and alleged discrepancies in profit disclosure. It was pointed out that the appellants had valuable property in a prime locality, indicating financial capability. The lack of disclosure of movable and immovable assets by the partners was emphasized. 4. Regarding the merits of the case, the Dy. Commissioner's findings on non-observation of Notification terms were relied upon by the Revenue. The Commissioner had extended the time for pre-deposit considering the lack of a strong prima facie case and the need to safeguard Revenue interests. 5. After considering submissions, it was observed that the appellants had a thriving business and valuable property, raising doubts about their financial distress claims. The lack of affidavits regarding assets and non-compliance with Notification terms were noted. The order was modified to require a pre-deposit of Rs. 1 lakh within three months, with the appeal to be heard on merits upon compliance. 6. The impugned order was set aside, and the matter was remanded to the Commissioner for verification of the pre-deposit. The appeal was to be heard on merits after the pre-deposit, with non-compliance leading to dismissal under Section 129E of the Customs Act, concluding the disposal of the stay application and appeal. This detailed analysis covers the issues involved in the judgment, providing a comprehensive overview of the legal proceedings and decisions made by the Tribunal.
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