Prima facie limitation in pre-deposit dispute led to waiver of balance duty and penalty pending disposal.

A prima facie limitation objection was accepted in a pre-deposit context where the department had already issued an earlier show cause notice on the same facts, indicating prior knowledge of the relevant case. On that basis, the Tribunal found force in the plea that the demand may be time-barred and treated the balance duty and penalty as fit for waiver pending final disposal. The pre-deposit of the balance tax and the entire penalty was therefore dispensed with, and the stay petition was disposed of.

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Issues: Whether the demand was barred by limitation for purposes of considering waiver of pre-deposit, and whether balance duty and penalty should be waived pending disposal.

Analysis: The second show cause notice was issued after the department had already issued an earlier notice on the same facts, and the appellant relied on this sequence to contend that the Revenue already had knowledge of the relevant facts. On that prima facie assessment, the Tribunal found force in the limitation plea and treated the balance demand and penalty as fit for waiver of pre-deposit.

Outcome: The condition of pre-deposit of the balance amount of tax and the entire amount of penalty was dispensed with, and the stay petition was disposed of.

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