Pre-deposit and stay relief: factual verification and notice-consistency issues led to only partial interim protection.

In a stay application involving Cenvat credit and duty demands, the Tribunal treated the credit dispute as a factual matter requiring final hearing because the department contested whether returned transformers could be correlated through CT numbers despite missing invoices. On the duty demand, it noted that the show cause notice proceeded on non-excisable goods, whereas the impugned order relied on manufacture through repair activity, creating a prima facie mismatch with the notice. Complete waiver of pre-deposit was therefore declined, but limited interim protection was granted through a partial pre-deposit and stay of the balance recovery.

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Issues: Whether the appellant had made out a prima facie case for complete waiver of pre-deposit and stay of recovery in respect of the Cenvat credit demand and the duty demand.

Analysis: The dispute on Cenvat credit turned on whether transformers returned for repair, though not accompanied by the original or duplicate invoices, could be linked to the triplicate invoices through CT numbers. As the departmental objection was that the CT numbers in the register did not tally with those in the invoices, the matter was treated as factual and fit for examination at final hearing, not for total waiver. On the duty demand, the show cause notice itself proceeded on non-excisable goods, while the impugned order rested on a different premise that repair activity amounted to manufacture. The order found that this basis did not accord with the notice and that, at least prima facie, duty could not be demanded on repaired transformers in the manner adopted by the lower authority.

Conclusion: Complete waiver was declined, but partial relief was granted by directing a pre-deposit of Rs. 1,00,000/- towards the Cenvat credit demand and staying recovery of the balance amount, including interest and penalty, pending disposal of the appeals.

Final Conclusion: The stay applications were disposed of by granting limited interim protection after a partial pre-deposit, while leaving the appeals for decision on merits.

Ratio Decidendi: In a stay application, where one demand turns on unresolved factual verification and another is prima facie inconsistent with the show cause notice, the Tribunal may deny full waiver yet grant partial pre-deposit and interim stay.

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