Prima facie limitation issue led to partial pre-deposit waiver and recovery stay in a duty dispute.

In a stay and waiver application, the tribunal found a strong prima facie limitation issue because the department's own objection showed awareness that the goods were cleared to sister units for construction activity. On that material, invocation of the extended period was treated as questionable for purposes of pre-deposit. Partial waiver was therefore granted: a deposit of Rs. 50,000 was ordered, and the balance pre-deposit was waived with recovery stayed pending appeal disposal.

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Issues: Whether, for purposes of stay and waiver of pre-deposit, the appellant had made out a prima facie case on limitation in view of departmental awareness of the clearances and the nature of use of the goods.

Analysis: The departmental objection itself indicated awareness that the goods were being cleared to sister units for construction activity. On that material, the invocation of the extended period was found to raise a strong prima facie limitation issue. The matter was therefore considered fit for partial waiver of pre-deposit.

Conclusion: The appellant was directed to deposit Rs. 50,000 and, subject to that deposit, pre-deposit of the balance dues was waived and recovery stayed pending disposal of the appeal.

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