Conditional interim stay granted where demand relied on investigative reports without independent examination of reconciliation material.

Interim protection against recovery was considered appropriate where the impugned demand had been worked out on the basis of reports from the Investigating Officer and the Preventive Unit, while the assessee had placed reconciliation material before the authority that was not independently examined or made available for rebuttal. Pending appeal, conditional relief was granted by staying recovery and waiving the balance pre-deposit, subject to deposit of Rs. 5 lakhs within eight weeks.

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Issues: Whether interim stay of the impugned demand and waiver of the balance pre-deposit should be granted to the appellant pending appeal.

Analysis: The impugned demand had been worked out by the authority on the basis of reports obtained from the Investigating Officer and the Preventive Unit. The order records that the assessee had placed reconciliation material before the authority, but the authority appears to have relied on subordinate reports without independently examining the material or making it available to the assessee. In these circumstances, pending consideration of the appeal, the request for protection against recovery was considered fit for conditional relief.

Conclusion: Interim stay was granted on condition of deposit of Rs. 5 lakhs within eight weeks, with waiver of the balance pre-deposit on such compliance.

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