Pre-deposit waiver and stay granted where revenue neutrality, limitation, and a strong prima facie valuation case were shown.

Pre-deposit and penalty were waived, and recovery of the demand was stayed pending appeal where the appellant showed revenue neutrality from inter-unit transfers within the same entity, raised limitation as a defence, and made out a strong prima facie case on valuation with no intention to evade duty. The tribunal treated these factors as sufficient to dispense with pre-deposit and grant interim protection until the appeal is heard.

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Issues: Whether pre-deposit and penalty should be waived and recovery of the demand stayed pending appeal.

Analysis: The appellant pointed to revenue neutrality arising from inter-unit transfers within the same entity, contended that the demand was barred by limitation, and asserted that the assessee had a strong prima facie case on valuation and no intention to evade duty. On that basis, a case for dispensing with pre-deposit was made out.

Conclusion: Pre-deposit and penalty were waived and recovery of the demand was stayed pending hearing of the appeal.

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