Conditional waiver of pre-deposit and stay of recovery granted where prima facie objections and financial hardship were shown.

Conditional interim relief may be granted where the appellant raises substantial prima facie objections and shows financial hardship. The Tribunal noted that the demands had been clubbed for duty purposes and then bifurcated unit-wise, creating a prima facie inconsistency in the basis of adjudication. It also considered arguable objections on classification, limitation, SSI exemption, and the quantum of demand, together with evidence of severe hardship. On that basis, the Tribunal waived the balance pre-deposit and stayed recovery, subject to a specified deposit, failing which the appeals could be dismissed.

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Issues: Whether waiver of pre-deposit and stay of recovery were warranted; and whether the manner in which the demands were clubbed and bifurcated across the units disclosed a strong prima facie case for grant of interim relief.

Analysis: The appeal arose from demands confirmed against three concerns whose clearances were clubbed for duty purposes and then bifurcated unit-wise, creating a prima facie contradiction in the basis of adjudication. The appellants also raised arguable objections on classification, limitation, SSI exemption, and the overall quantum of demand, while producing material to show severe financial hardship. In the circumstances, and taking into account the preliminary objections and the hardship shown, the Tribunal found it appropriate to grant interim protection on conditions rather than insist on full pre-deposit.

Conclusion: Waiver of the balance pre-deposit and stay of recovery were granted, subject to deposit of Rs. 7,00,000 by Shri Joy Varghese within the stipulated time; failing compliance, the appeals would be liable to dismissal under Section 35F of the Central Excise Act, 1944.

Final Conclusion: The order gives conditional interim relief to the appellants by substantially waiving pre-deposit and staying recovery pending final hearing.

Ratio Decidendi: Where the appeal raises substantial prima facie objections and the appellant demonstrates financial hardship, conditional waiver of pre-deposit may be granted to secure the revenue interest pending disposal of the matter.

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