Prima facie valuation dispute justified waiver of pre-deposit and stay of recovery pending appeal.

The Tribunal found a prima facie case for waiver of pre-deposit and stay of recovery pending appeal because the duty had been discharged on the basis of retail sale price after deducting a 15% discount under Notification No. 245/83. It noted that the notification contemplates retail sale price based on MRP less duty and other taxes, and that royalty received for use of brand names could prima facie form part of the product cost. On that footing, the disputed balance pre-deposit was waived and recovery stayed until disposal of the appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery pending appeal.

Analysis: The Tribunal noted that the duty had been discharged on the basis of retail sale price after deducting 15% discount under Notification No. 245/83. It further observed that the notification contemplates retail sale price based on MRP less duty and other taxes, and that the royalty received for the use of brand names could prima facie form part of the product cost. On that basis, the Tribunal found that a prima facie case had been made out for waiver of the disputed pre-deposit amount.

Conclusion: The appellant was held entitled to waiver of pre-deposit of the balance amount and the recovery was stayed till disposal of the appeal.

Ratio Decidendi: Where the appellant establishes a prima facie case on the duty computation and valuation basis, pre-deposit may be waived and recovery stayed pending appeal.

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