Waiver of pre-deposit and recovery stay granted where a connected writ petition already carried a continuing interim stay.

A request for waiver of pre-deposit and stay of recovery was considered in a dispute over a 100% EOU's clearance of goods into the Domestic Tariff Area under Notification No. 2/94-CE. The record showed that the High Court had already granted and continued an interim stay in the connected writ petition. In light of that subsisting stay, further coercive recovery proceedings in the appeal were not warranted at that stage, and the stay application was allowed.

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Issues: Whether the application for waiver of pre-deposit and stay of recovery was to be allowed in view of the interim order of the High Court in the connected writ petition.

Analysis: The application sought waiver of pre-deposit of duty, penalty and interest in a dispute concerning entitlement of a 100% EOU to clear goods into the Domestic Tariff Area under Notification No. 2/94-CE dated 01.04.1995. The record showed that the High Court had already granted interim stay in the connected writ petition and that the stay was continuing. In these circumstances, further coercive proceedings in the appeal were not warranted at that stage.

Conclusion: The stay application was allowed.

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