The Customs Act, 1962
129E. DEPOSIT, PENDING APPEAL, OF DUTY AND INTEREST DEMANDED OR PENALTY LEVIED. –
1[129E. Deposit, pending appeal, of 2[duty and interest], demanded or penalty levied. —Where in any appeal under this Chapter, the decision or order appealed against relates to any 2 [duty and interest] demanded in respect of goods which are not under the control of the customs authorities or any penalty levied under this Act, the person desirous of appealing against such decision or order shall, pending the appeal deposit with the proper officer 2[duty and interest] demanded or penalty levied:
Provided that where in any particular case, the 3[Commissioner (Appeals)] or the Appellate Tribunal is of the opinion that the deposit of 2 [duty and interest] demanded or penalty levied would cause undue hardship to such person, the 3 [Commissioner (Appeals)] or, as the case may be, the Appellate Tribunal may dispense with such deposit subject to such conditions as he or it may deem fit to impose so as to safeguard the interests of revenue:
4[Provided further that where an application is filed before the Commissioner (Appeals) for dispensing with the deposit of duty and interest demanded or penalty levied under the first proviso, the Commissioner (Appeals) shall, where it is possible to do so, decide such application within thirty days from the date of its filing.] ]
Where the Tribunal has reduced the pre-deposit after satisfying and giving grave and weighty reasons, the discretion cannot be said has been exercised arbitrarily; Collector of Customs, Madras-1 v. Customs, Excise and Gold (Control) Appellate Tribunal,  50 ECC 93 (Mad).
1.Chapter XV (containing sections 128, 128A, 129, 129A, 129B, 129C, 129D, 129E, 130, 130A, 130B, 130C, 130D, 130E, 130F, 131, 131A, 131B, 131C) subs. by Act 44 of 1980, sec. 50 and the Fifth Sch. Pt. 1, for Chapter XV (containing sections 128, 129, 130, and 131) (w.e.f. 11-10-1982) .
2.Subs by Act 55 of 1991, sec 10 , for “duty” (w. e. f 23.12. 1991 ).
3. Subs. by Act 22 of 1995, sec. 50, for “Collector of Customs” (w.e.f. 26-5-1995).
4. Ins by Act 14 of 2001, sec. 112 ( w. e. f. 11. 5. 2001).