Estimated stock verification can support waiver of pre-deposit and stay when deliberate non-accountal is not shown.

Stock verification based only on estimated weight, rather than actual weighment, was treated as creating a strong prima facie case against a finding of deliberate non-accountal or intentional suppression. On that basis, the confiscation and penalty order was regarded as vulnerable for interim purposes, and the appellant's financial difficulty was also considered. The requirement of pre-deposit of penalty was waived and recovery was stayed until disposal of the appeal, while the merits of confiscation and penalty were left open for final determination.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit and stay of recovery in a matter where the alleged excess stock was determined by estimation rather than actual weighment.

Analysis: The stock of raw material and finished goods was found only on the basis of estimated weight derived from cross-sectional dimensions and length, and not by actual weighment. On that premise, the order confiscating the goods and imposing penalty was found, at least prima facie, to be vulnerable because the allegation of non-accountal and intentional suppression was not supported by actual physical weighment. The financial difficulty placed on record was also accepted for additional consideration.

Conclusion: The appellant established a strong prima facie case, the requirement of pre-deposit of penalty was waived, and recovery of the penalty was stayed till disposal of the appeal.

Final Conclusion: Interim relief was granted to the appellant, while the merits of the confiscation and penalty order were left to be decided in the appeal.

Ratio Decidendi: Where stock verification is based only on estimation and not actual weighment, a prima facie case may exist against treating the difference as deliberate non-accountal so as to justify waiver of pre-deposit and stay of recovery.

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