Limitation and pre-deposit waiver turned on undisputed declarations and no timely revenue objection to the goods' classification.

Declarations describing the goods and claiming exemption were treated as significant for limitation, because no objection was raised by the Revenue at the relevant time. On that basis, a demand relating to the period from 1 May 1994 to 31 March 1995, issued by show cause notice on 21 January 1997, was considered prima facie barred by limitation. The assessee therefore established a prima facie case for waiver of pre-deposit, and the stay petition was allowed.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit on the ground that the demand appeared to be barred by limitation.

Analysis: The period involved was 1-5-1994 to 31-3-1995, while the show cause notice was issued on 21-1-1997. The appellants had filed declarations describing the goods as treated paper converted into smaller rolls, sheets or bags, and had also claimed the benefit of Notification No. 101/94. No objection had been raised by the Revenue against the classification shown in those declarations. On that basis, the demand was found to be prima facie barred by limitation.

Conclusion: The appellants were entitled to waiver of the pre-condition of deposit, and the stay petition was allowed.

Ratio Decidendi: Where the assessee's declarations disclose the nature of the goods and the claimed exemption, and no objection is raised at the relevant time, the demand may be treated as prima facie time-barred for the purpose of waiver of pre-deposit.

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