Prima facie case for interim stay supported by price variation clause and contract-based pricing in duty dispute.

A price variation clause in the Department of Telecommunications contract, together with fixation of price on the basis of copper rod prices for the relevant month, established a strong prima facie case for interim relief. On that footing, the CESTAT stayed recovery and waived pre-deposit of the entire duty amount during the pendency of the appeal.

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Issues: Whether pre-deposit of the duty amount was to be waived and recovery stayed during the pendency of the appeal.

Analysis: The contract with the Department of Telecommunications contained a price variation clause, and the price had been fixed on the basis of copper rod prices during the relevant month. On this basis, the applicants established a strong prima facie case for relief pending appeal.

Outcome: The entire duty amount was ordered to be stayed during the pendency of the appeal.

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