Prima facie case for waiver of pre-deposit where bona fide belief undermined allegations of suppression and fraud.

A strong prima facie case was found for waiver of pre-deposit and stay of recovery where an earlier finding showed that the connected party had acted under a bona fide belief that mould cost was not includible in the value of components. That factual basis made the allegation of suppression or fraud difficult to sustain at the interim stage and supported the view that the demand could not then proceed on the footing of deliberate concealment. On that reasoning, pre-deposit was waived and recovery stayed pending appeal.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit and stay of recovery, having regard to the earlier finding that the connected party had acted in a bona fide belief and the allegation of suppression or fraud.

Analysis: The earlier order had recorded that the connected party acted in a bona fide belief that the cost of moulds was not includible in the value of the components. On that basis, the allegation of suppression or fraud was found prima facie difficult to sustain against the connected party, and this supported the appellants' plea that the demand could not, at this stage, proceed on the footing of deliberate suppression.

Outcome: The appellants were found to have made out a strong prima facie case, the requirement of pre-deposit was waived, and recovery was stayed pending the appeal.

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