Prima facie case at stay stage supports waiver of pre-deposit and stay of recovery pending appeal.

At the stay stage of an appeal, a prima facie case based on limitation was found in favour of the appellant, and the earlier departmental awareness of the objection supported waiver of pre-deposit. On that limited assessment, recovery of the demand and penalties was stayed pending disposal of the appeal. The principle stated is that where the appellant establishes a prima facie case, the tribunal may dispense with pre-deposit and grant stay of recovery during the appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery of the demand and penalties during the pendency of the appeal.

Analysis: The appeal was at the stage of stay consideration. The appellant relied on the plea of limitation and pointed out that the relevant objection had earlier come to the notice of the departmental authorities. On the material placed, a prima facie case was found in favour of the appellant for the limited purpose of dispensing with pre-deposit.

Conclusion: Waiver of pre-deposit and stay of recovery were granted in favour of the appellant.

Ratio Decidendi: Where a prima facie case is made out at the stay stage, pre-deposit may be waived and recovery stayed pending disposal of the appeal.

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