Disputed exemption and limitation facts defeated complete waiver of pre-deposit; only partial interim relief was granted.
Where exemption entitlement and limitation depended on disputed facts about whether transformers were specially designed and whether duty was paid on some clearances while exemption was claimed on others, complete waiver of pre-deposit was found unwarranted at the interim stage. The tribunal noted that the appellant had not clearly established full disclosure to the department regarding the mixed pattern of duty-paid and exempt clearances, so the plea of limitation could not be accepted then. Interim relief was granted only in part: a substantial pre-deposit was ordered, the balance was waived, and recovery was stayed pending appeal.
Issues: Whether the appellant had made out a prima facie case for complete waiver of pre-deposit and stay, including on the plea of limitation.
Analysis: The appellant's entitlement to exemption under the notification depended on disputed facts as to whether the transformers were specially designed and whether duty was paid in some clearances while exemption was claimed in others. In the presence of this factual controversy, the plea that the demand was barred by limitation was not accepted at the interim stage. The record also indicated that the appellant had not clearly established disclosure to the department regarding the mixed pattern of duty-paid and exempt clearances. On that basis, complete waiver of pre-deposit was found unwarranted.
Conclusion: Complete waiver of pre-deposit was denied, and the appellant was directed to deposit a specified amount while the balance was waived and recovery stayed pending appeal.
Final Conclusion: Interim relief was granted only in part, with a substantial pre-deposit ordered before the appeal could proceed on the remaining demand.
Ratio Decidendi: Where entitlement to exemption and the plea of limitation rest on disputed factual issues, complete waiver of pre-deposit is not justified at the interim stage absent a clear prima facie case.
TaxTMI 
AI Drafter ✕
TaxTMI 
