Prima facie case for pre-deposit waiver supports stay of recovery where duty evasion and classification remain unresolved.

Waiver of pre-deposit and stay of recovery pending appeal may be granted where the appellant shows a prima facie case and the dispute remains unsettled on interim review. Here, the goods were stated to have been entered in the RG-1 register and later used in manufacture of other goods cleared on payment of duty, while the controversy also raised classification issues and the question of any deliberate intention to evade duty. On those facts, the seizure and proposed consequences could not be treated as conclusively established at the interim stage, and the requirement of full pre-deposit was waived with recovery stayed during the appeal.

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Issues: Whether the appellant made out a prima facie case for waiver of pre-deposit and stay of recovery pending appeal.

Analysis: The goods were stated to have been entered in the RG-1 register and later used in manufacture of other goods cleared on payment of duty. The dispute also involved technical questions of classification and whether there was any deliberate intention to evade duty. In these circumstances, the seizure and proposed consequences could not be treated as conclusively established at the interim stage.

Conclusion: The appellant made out a prima facie case, and the requirement of pre-deposit of the entire dues was waived with stay of recovery during pendency of the appeal.

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