Prima facie tax payments under the governing regime can justify complete waiver of predeposit at the stay stage.

Amounts paid as turnover tax and entry tax under the relevant sales tax regime, and in response to the original tax demand, were treated on a prima facie basis as tax payments rather than mere deposits. At the stay stage, the Tribunal found that such payments could support complete waiver of predeposit where they were made under the governing notification and clarification, and it saw no apparent defect because entry tax was paid at the time of sale rather than removal of goods. Interim stay was therefore granted and no predeposit was required pending appeal.

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Issues: Whether the appellants had made out a prima facie case for complete waiver of predeposit and interim stay by showing that the amounts paid towards turnover tax and entry tax were taxes paid under the relevant law and not mere deposits.

Analysis: The application arose from a stay request in which the appellants contended that turnover tax had been paid in accordance with the governing sales tax notification and the corresponding clarification, and that entry tax had also been paid at the time of sale. On a prima facie view, the amounts could not be treated as voluntary deposits when they were paid under the relevant legal regime and as originally demanded by the tax authorities. The Tribunal also found no apparent deficiency in the payment of entry tax merely because it was made at the time of sale rather than at the time of removal of goods.

Conclusion: The appellants were held to have established a prima facie case for total waiver of duty and penalty predeposit, and interim stay was granted during the pendency of the appeal.

Final Conclusion: The stay application succeeded, and no predeposit was required at that stage.

Ratio Decidendi: Amounts paid as tax under the relevant law and in compliance with the original demand cannot, at the stay stage, be treated as mere deposits for the purpose of denying waiver of predeposit.

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