Valuation under Rule 8 and pre-deposit relief: complete waiver denied for lack of prima facie case, with limitation left open.

In a stay application arising from a valuation dispute under Rule 8, complete waiver of pre-deposit was refused because the assessee did not make out a strong prima facie case and had failed to produce the cost-construction details it had undertaken to furnish. The Tribunal relied on the departmental cost determination supporting the duty demand and held that only limited interim relief was justified. The limitation objection was kept open for final hearing after detailed factual examination. Conditional relief was granted by directing a partial deposit, with the balance duty, interest, and penalty stayed pending disposal of the appeal.

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Issues: Whether the applicant had made out a prima facie case for complete waiver of pre-deposit in a duty demand based on valuation under Rule 8, and whether limitation could be examined at the stage of waiver.

Analysis: The applicant had withdrawn the request for provisional assessment and had undertaken to furnish cost construction details after finalisation of accounts, but did not produce the promised documents. The demand was founded on the opinion of the Deputy Director (Cost) regarding the correct cost of production for valuation under Rule 8. On these facts, the Tribunal held that the applicant had not established a prima facie case for complete waiver of the duty amount. The plea of limitation was kept open for consideration at the final hearing after detailed examination of facts.

Conclusion: Complete waiver of pre-deposit was declined. The applicant was directed to deposit Rs. 10 lakhs, and on such deposit the balance duty, interest, and penalty was waived and recovery stayed pending disposal of the appeal.

Final Conclusion: The interim relief was granted only to a limited extent, and the appeal remained pending for final adjudication on merits.

Ratio Decidendi: In a stay application, complete waiver of pre-deposit is not warranted where the assessee fails to establish a strong prima facie case and the valuation dispute is supported by the departmental cost determination.

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