Interim pre-deposit relief granted in dutiability dispute over intermediate products, with recovery stayed during appeal.

Waiver of balance pre-deposit and stay of recovery were granted pending appeal in a dispute over the dutiability of intermediate products used in precious metal manufacture. The appellant challenged the demand on non-marketability and limitation grounds, and the Tribunal treated both issues as contentious and arguable at the interim stage without expressing any final view on merits or limitation. Noting conditional relief granted in a materially similar case involving an identically situated assessee, the Tribunal required a bank guarantee for 25% of the confirmed duty and waived the balance pre-deposit and penalty amounts for the time being.

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Issues: Whether the appellant was entitled to waiver of the balance pre-deposit and stay of recovery pending appeal.

Analysis: The demand related to intermediate products arising in the manufacture of precious metal products and the appellant disputed dutiability on the grounds of non-marketability and limitation. The issues were found to be contentious and arguable at the interim stage, and no final view was taken on merits or limitation. The Tribunal also took note of the treatment granted in a materially similar case involving an identically situated assessee, where conditional relief had been granted on the basis of the overall facts and the directions of the High Court.

Conclusion: The appellant was directed to furnish a bank guarantee of 25% of the confirmed duty amount, and the balance pre-deposit and penalty amounts were waived for the time being with recovery stayed during pendency of the appeal.

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