Conditional pre-deposit and recovery stay granted where exemption claim lacked prescribed consignment notes and declarations

Conditional pre-deposit relief was granted because the record did not show a prima facie case for complete waiver. The exemption claim under Notification No. 32/2004-ST failed on the available materials, as the prescribed consignment notes and declarations were not produced. The applicant was directed to make a limited deposit, and on compliance the balance pre-deposit of tax, penalty and interest remained waived until disposal of the appeal, with recovery stayed in the meantime.

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Issues: Whether the applicant was entitled to waiver of pre-deposit and stay of recovery during the pendency of the appeal.

Analysis: The applicant had not appeared and the matter had earlier been adjourned on its request. On the available record, the claim for exemption under Notification No. 32/2004-ST dated 03.12.2004 was not supported by the prescribed consignment notes and declarations. In these circumstances, no prima facie case for complete waiver was made out, though the appeal was kept pending with conditional relief against recovery.

Conclusion: The applicant was directed to deposit Rs. 50,000 within six weeks, and on such deposit the balance pre-deposit of tax, penalty and interest stood waived till disposal of the appeal with recovery stayed.

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