Transferee liability in customs duty demands supported unconditional stay where notice was delayed and joint liability was imposed.

A transferee of a licence faced customs duty demands confirmed jointly and severally with the original licence holder, but the notice had been issued after a five-year delay. Relying on its earlier decisions on transferee liability and joint and several liability, CESTAT held that these circumstances established a sufficient prima facie case for interim protection. The stay petition was therefore allowed unconditionally.

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Issues: Whether the appellant had made out a prima facie case for grant of unconditional stay against confirmation of customs duty demands.

Analysis: The Tribunal noted that the duty demand had been confirmed against the transferee of the licence, that the notice was issued after a delay of five years, and that the demand had been fastened jointly and severally on the transferee and the original licence holder. In view of these circumstances and the Tribunal's earlier decisions on transferee liability and joint and several liability, the appellant was found to have established a sufficient prima facie case for interim protection.

Outcome: The stay petition was allowed unconditionally.

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