Transportation charges in assessable value: partial pre-deposit waiver granted on prima facie case, with recovery stayed pending appeal.

In a stay application concerning inclusion of transportation charges in assessable value, CEGAT granted only partial interim relief on a prima facie assessment of the record and the equities of the case. The applicants argued that transportation charges were separately collected and, under amended Rule 5 of the Valuation Rules, would not form part of assessable value; the authority found this contention worthy of detailed examination at final hearing but treated any lapse as procedural for interim purposes. Complete waiver of pre-deposit was declined, but deposit of Rs. 2 lakhs was ordered and, subject to compliance, the balance pre-deposit was waived and recovery stayed pending appeal.

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Issues: Whether the applicants were entitled to complete waiver of pre-deposit and stay of recovery pending appeal in the dispute concerning inclusion of transportation charges in assessable value.

Analysis: The applicants contended that transportation charges were collected in the same manner even prior to the amendment to the valuation rules and that, under the amended Rule 5 of the Valuation Rules, transportation cost collected from the buyer and shown separately in the invoice would not form part of assessable value. The order noted that the matter required detailed examination on the record at the stage of final hearing, but found prima facie support for the applicants' stand and considered the lapse, if any, to be procedural for the purpose of interim relief.

Conclusion: Complete waiver was declined. The applicants were directed to deposit Rs. 2 lakhs, and subject to such compliance, the balance pre-deposit was dispensed with and recovery was stayed during the pendency of the appeal.

Final Conclusion: Interim relief was granted in part by substantially reducing the pre-deposit requirement and staying recovery, while leaving the merits of valuation open for final adjudication.

Ratio Decidendi: In deciding a stay application, the authority may grant partial waiver of pre-deposit on a prima facie assessment of the record and the equities of the case, while reserving the merits for final hearing.

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