Prima facie case for waiver of pre-deposit fails where front-company findings and SSI exemption concerns remain unrebutted.

In a stay application, the Tribunal found no prima facie case for full waiver of pre-deposit because the Commissioner's findings of a front-company arrangement, common infrastructure and financial support, and clearance of hydrogen gas at nominal rates were not displaced by tangible evidence. Relying on the earlier Supreme Court ruling on the same business pattern and the apparent applicability of denial of SSI exemption, the Tribunal held that interim relief could be granted only on a limited basis. It directed pre-deposit of 50% of the confirmed duty and 50% of the penalties, with recovery of the balance stayed on compliance.

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Issues: Whether, in a stay application, the applicants had made out a prima facie case for waiver of pre-deposit and stay of recovery of confirmed duty and penalties.

Analysis: The Tribunal examined the Commissioner's findings that the three bottling units were floated as front companies, shared common staff, records, premises, plant and financial assistance, and that hydrogen gas was cleared to them at nominal rates while being sold onward at much higher prices. The applicants could not produce tangible material to dislodge those findings. In view of the earlier Supreme Court ruling on the same business pattern and the prima facie applicability of the denial of SSI exemption, the Tribunal found no prima facie error in the impugned order for the purpose of stay.

Conclusion: The applicants were directed to pre-deposit 50% of the confirmed duty and 50% of the penalties within the stipulated time, and recovery of the balance was stayed on compliance.

Final Conclusion: Interim relief was granted only to a limited extent, with conditional protection against recovery subject to partial pre-deposit.

Ratio Decidendi: In a stay proceeding, where the lower authority's findings of a front-company arrangement and misuse of SSI exemption are not displaced by tangible evidence, partial pre-deposit may be ordered and recovery of the balance may be stayed conditionally.

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