Prima facie case for pre-deposit waiver where auctioned inputs were linked to written-off stock and recovery was stayed.

The appellant established a prima facie case for waiver of pre-deposit and stay of recovery on a demand relating to inputs cleared in auction and written off in the books. The record showed a statement correlating the auctioned items with part numbers, unit value, book value and sale price, but the lower orders did not address that material. No admission by company officials or other evidence disproved the linkage between the written-off inputs and the auctioned inputs. The note also recorded that, for the relevant period, duty on inputs cleared as such was payable on transaction value. Waiver and stay were granted pending appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit and stay against recovery in respect of the demand arising from clearance of inputs sold in auction and written off in the books.

Analysis: The recorded materials showed that the appellant had placed a statement before the department correlating the items sold in auction with their part numbers, unit value, book value and sale price. There was no discussion of that statement in the lower orders. No admission by the company officials was shown to establish that the inputs written off and the inputs auctioned were different, and the department had not produced any other evidence to disprove the linkage. The order also noted that, for the relevant period, duty on inputs cleared as such was payable on transaction value.

Conclusion: The appellant established a prima facie case. Waiver of pre-deposit was granted and recovery was stayed during the pendency of the appeal.

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