Pre-deposit waiver on alleged unaccounted production where discrepancy in records was only prima facie explained

A stay and pre-deposit dispute turned on whether production figures in an assembly report were shown to be unaccounted production over and above RG-1 records. The Tribunal held that the Department had acted on presumption alone and that no evidence established suppression or unaccounted manufacture; the discrepancy was prima facie explained. Partial waiver of pre-deposit was therefore granted, with deposit of Rs. 50,000 directed and recovery of the balance duty and penalty stayed during the pendency of the appeals.

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Issues: Whether the appellants had made out a case for waiver of the remaining pre-deposit of duty and penalty and stay of recovery during the pendency of the appeals.

Analysis: The dispute centred on whether the production figures in the assembly production report were over and above the figures recorded in the RG-1 register. The Tribunal found that the Department had proceeded on a presumption and that no evidence on record established that the reported figures represented unaccounted production. The difference between the two sets of figures was also found to be prima facie explained.

Outcome: Partial waiver of pre-deposit was granted by directing deposit of Rs. 50,000, and recovery of the balance duty and penalty was stayed during the pendency of the appeals.

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