Prima facie merits and insufficient corroboration justified waiver of further pre-deposit and stay of recovery pending appeal.

A stay application may justify waiver of further pre-deposit where the demand is supported only by uncorroborated material and the appellants have already made a sufficient deposit. The commentary notes that alleged clandestine removal was based mainly on a Sales Manager Report without supporting evidence, while the SSI exemption and clubbing issues were said to be covered by binding judicial decisions and the impugned order appeared to travel beyond the show cause notices on some factual aspects. On that prima facie assessment, further deposit was waived, recovery was stayed during the appeal, and interim protection against coercive recovery was granted pending final adjudication.

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Issues: Whether waiver of pre-deposit and stay of recovery were justified in view of the prima facie merits of the demand relating to alleged clandestine removal, SSI exemption, and clubbing of clearances.

Analysis: The demand for alleged clandestine removal was found to rest mainly on the Sales Manager Report without corroborative evidence of clandestine manufacture or clearance. The other demands were seen as raising issues that had been substantially addressed in favour of assessees by binding judicial decisions, and the order under challenge appeared to travel beyond the show cause notices on certain factual aspects. The deposit already made was treated as sufficient for admission of the appeals.

Conclusion: The requirement of any further substantial deposit was waived and recovery of the dues under the impugned order was stayed during the pendency of the appeals.

Final Conclusion: The appeals were admitted on the basis of a prima facie case and interim protection was granted against coercive recovery pending final adjudication.

Ratio Decidendi: In a stay application, where the demand is supported only by uncorroborated material and the appellants have made a sufficient deposit, further pre-deposit may be waived and recovery stayed pending appeal.

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