Section 4A liability turns on sale to the ultimate consumer in packaged form; debatable facts justified partial pre-deposit waiver.

Liability under section 4A for notified sanitaryware depended on whether the goods were sold to the ultimate consumer in packaged form, not merely on the manner of packing in grass or haystack. The record showed a factual controversy on that decisive question, and the authority below had focused on packing rather than consumer sale in packaged form. Because the issue was debatable, partial waiver of pre-deposit was warranted and interim stay was granted on terms. The amount already recovered by encashment of the bank guarantee was treated as the pre-deposit for hearing of the appeal.

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Issues: Whether the appellant was entitled to partial waiver of pre-deposit and interim stay in a dispute concerning liability under section 4A on sanitaryware packed in grass or haystack.

Analysis: The disputed goods were notified sanitaryware, but the liability under section 4A depended not merely on the fact of packing, but on whether the goods were sold to the ultimate consumer in packaged form. The material on record indicated a factual controversy on this aspect, and the authority below appeared to have focused on the manner of packing rather than on the decisive question whether the commodity was intended for sale to the ultimate consumer in packaged form. In view of this debatable issue, a case for partial waiver of pre-deposit was made out.

Conclusion: Partial waiver of pre-deposit was granted and interim stay was directed on terms.

Final Conclusion: The application succeeded to the extent of suspension of recovery during the appeal, with only the amount already recovered by encashment of the bank guarantee treated as pre-deposit for hearing of the appeal.

Ratio Decidendi: For liability under section 4A, the decisive consideration is whether the notified goods are sold to the ultimate consumer in packaged form, and where that question is debatable, partial waiver of pre-deposit may be granted.

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