Deposit, pending appeal, of duty demanded or penalty levied
194. (1) Any person desirous of appealing under section 193 [or section 196A] against any decision or order relating to any duty demanded in respect of goods which have ceased to be under the control of customs authorities or to any penalty levied under this Act shall, at the time of filing his appeal or if he is so permitted by the appellate authority at any later stage before the consideration of the appeal, deposit with the appropriate officer [fifty per cent of the duty demanded or fifty per cent of the penalty imposed, or both, as the case may be]:
Provided that such person may, instead of depositing [the amount of the penalty as aforesaid], deposit only fifty percent thereof and furnish a guarantee from a scheduled bank for the due payment of the balance:
Provided further that where, in any particular case, the appellate authority is of the opinion that the deposit of duty demanded or [penalty imposed] will cause undue hardship to the appellant, it may dispense with such deposit, either unconditionally or subject to such conditions as it may deem fit to impose.
(2) If, upon an appeal it is decided that the whole or any portion of the aforesaid duty or penalty was not leviable, the appropriate officer shall return to the appellant such amount or portion as the case may be.