Pre-deposit waiver and stay relief refused where deemed credit was unsupported and financial hardship was not shown.

Waiver of pre-deposit and stay of recovery was refused where the applicants failed to show that duty stated on invoices issued by compounded levy manufacturers had actually been discharged, weakening the claim to deemed credit under Notification No. 58/97-C.E. The record also did not establish financial hardship sufficient for discretionary interim relief. As a result, complete waiver was declined and a pre-deposit direction was imposed, with stay relief to follow only on compliance.

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Issues: Whether the applicants had made out a case for waiver of pre-deposit and stay of recovery in respect of the duty demand and penalty.

Analysis: The available record indicated that the credit had been taken on invoices issued by input-manufacturers operating under the compounded levy scheme, and there was no evidence that the duty liability declared in those invoices had actually been discharged. In the absence of such proof, the claim to deemed credit under Notification No. 58/97-C.E. did not appear to be supported. The applicants also did not establish financial hardship warranting discretionary relief.

Conclusion: The request for complete waiver of pre-deposit and stay was not accepted. The applicants were directed to deposit Rs. 34,000 within four weeks, and on compliance, stay relief was to follow for the penalty and balance duty.

Final Conclusion: Interim relief was declined to the extent of complete waiver, and the matter was left to proceed subject to compliance with the pre-deposit direction.

Ratio Decidendi: A waiver of pre-deposit and stay of recovery is not justified where the claimant fails to show discharge of the underlying duty liability and does not establish financial hardship.

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