Pre-deposit waiver based on financial hardship and prima facie limitation bar in a duty demand dispute.

Waiver of pre-deposit was granted where a State PSU showed substantial losses through balance-sheet material and raised a prima facie limitation plea. The show cause notices were issued in 2006 for duty liability relating to the period from March 2002 to February 2003, supporting the contention that the demand was time-barred. The appellant's financial hardship, combined with the prima facie bar of limitation, justified stay of recovery pending further proceedings.

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Issues: Whether waiver of pre-deposit was justified in view of financial hardship and the prima facie plea that the demand was time-barred.

Analysis: The appellant was a State PSU and had produced balance-sheet material indicating substantial losses. The show cause notices were issued in 2006 in relation to duty liability for the period from March 2002 to February 2003. On these facts, the demand was treated as barred by time, and the financial position supported grant of stay.

Conclusion: Waiver of pre-deposit was granted and recovery was stayed.

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