BIFR registration triggers Section 22 protection, leading to waiver of pre-deposit and modification of the stay order.

Subsequent registration of an assessee's reference before the BIFR under the Sick Industrial Companies (Special Provisions) Act, 1985 justified modification of an earlier stay order. Once the reference was registered, Section 22 protection against recovery became available, so the Tribunal waived the pre-deposit of duty and penalty. The Tribunal also noted that the earlier stay order had already relied on the Supreme Court's ruling in Real Value Appliances and had preserved the Revenue's liberty to pursue remedies before the BIFR.

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Issues: Whether the pre-deposit of duty and penalty should be waived in view of the subsequent registration of the assessee's reference before the Board for Industrial and Financial Reconstruction under the Sick Industrial Companies (Special Provisions) Act, 1985.

Analysis: The reference under the sick industrial companies was registered after the earlier stay order was passed, making it a subsequent development relevant to the pending request for modification. Once the reference stood registered, the statutory protection against recovery under Section 22 became available. The Tribunal also noted that the earlier stay order had already taken into account the Supreme Court's decision in Real Value Appliances and had preserved the Revenue's liberty to pursue remedies before the BIFR.

Conclusion: The pre-deposit requirement was waived and the stay order was modified in favour of the assessee.

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