Pre-deposit waiver in exemption dispute granted conditionally, with recovery stayed pending appeal and further deposit required.

Interim relief in a duty dispute was considered where exemption under the small-scale notification was challenged for alleged non-compliance with BIS certification requirements. The Tribunal held that entitlement to the notification benefit and the factual foundation of the exemption claim required detailed examination at final hearing, so full waiver was not justified at that stage. Since part of the demand had already been deposited, a further deposit was directed as a condition for protection. Recovery of the balance demand, penalty and interest was stayed pending disposal of the appeal, subject to compliance with the deposit order.

---

---

Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery of the balance demand, penalty and interest pending disposal of the appeal.

Analysis: The application arose from a demand of duty, penalty and interest based on alleged wrongful availment of small scale exemption without BIS certification. The Tribunal found that the entitlement to the notification benefit and the factual basis of the exemption claim required detailed examination at the stage of final hearing. Since the appellant had already deposited Rs. 1.47 lakhs, the Tribunal directed a further deposit of Rs. 1.50 lakhs within eight weeks as a condition for interim relief.

Conclusion: Waiver of pre-deposit was granted for the balance amount subject to compliance with the further deposit direction, and recovery of the balance dues was stayed till disposal of the appeal.

---