Pre-deposit waiver and stay on recovery granted where valuation dispute, limitation plea, and financial hardship made out a prima facie case.

Pre-deposit may be waived and recovery stayed pending appeal where the appellant shows a prima facie dispute on taxability or valuation, supported by disclosure of the clearance method, purchase orders, invoices, and departmental correspondence. Bona fide contest on inclusion of software value in assessable value, together with a prima facie limitation issue and demonstrated financial hardship, can justify interim protection. On these facts, the tribunal found the balance of convenience in favour of the appellant and granted waiver of pre-deposit and stay against recovery during pendency of the appeal.

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Issues: Whether pre-deposit of the adjudged dues should be waived and recovery stayed pending appeal.

Analysis: The appellant had disclosed the manner of clearance of software, the basis on which separate assessment was claimed, and the supporting purchase order and invoices. The correspondence with the department showed a bona fide basis for contesting inclusion of software value in assessable value, giving rise to a prima facie case on limitation. The appellant also established serious financial hardship, including substantial losses and restructuring difficulties. In these circumstances, the balance of convenience favoured grant of interim protection pending disposal of the appeal.

Conclusion: Pre-deposit was waived and stay against recovery was granted during pendency of the appeal.

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