Pre-deposit waiver in excise and customs dispute upheld on strong prima facie case and natural justice concerns.

In a stay application in an excise and customs dispute, full waiver of pre-deposit was granted because the appellants showed a strong prima facie case from permission records, duty payment evidence and a final exit order. The record also treated sales to domestic units against convertible foreign exchange as deemed exports. The show cause notice did not disclose the Board of Approvals ground later relied on in the Commissioner's order, causing prejudice and a breach of natural justice. On that material, recovery of the demanded amounts was stayed pending disposal of the appeal.

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Issues: Whether the appellants were entitled to full waiver of pre-deposit in the pending excise and customs dispute, having regard to the permission granted for clearances, payment of duty, the final exit order, and the plea of violation of natural justice.

Analysis: The appellants had cleared shrimp feed after obtaining permission from the Development Commissioner, and there was material showing payment of excise duty. The record also contained a final exit order issued by the Development Commissioner, and sales to domestic units against convertible foreign exchange were treated as deemed exports. The impugned show cause notice did not mention the alleged decision of the Board of Approvals relied upon in the Commissioner's order, leaving the appellants without an to meet that contention. On the material available, the appellants disclosed a strong prima facie case and the adjudication appeared to have overlooked relevant facts.

Conclusion: Full waiver of pre-deposit was granted and recovery of the demanded amounts was stayed pending disposal of the appeal.

Ratio Decidendi: In a stay application, where the appellant shows a strong prima facie case supported by permission records, duty payment, and a final exit order, and the revenue relies on an unnotified ground causing prejudice, full waiver of pre-deposit is justified.

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