Prima facie case supported by circulars and prior appellate order justified unconditional stay without full pre-deposit.

A petitioner challenging customs demand in appeal was found entitled to unconditional stay because its classification of the imported goods had already been accepted in an earlier identical import, and a CBEC circular supported that position. Those factors established a prima facie case and also favoured the balance of convenience, so insistence on full pre-deposit was held unwarranted. The absence of a separate plea of financial hardship did not defeat relief. The impugned pre-deposit direction was set aside and stay was granted pending disposal of the appeals on merits.

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Issues: Whether the petitioner was entitled to unconditional stay of the demand in the customs appeals, and whether the order directing full pre-deposit was unsustainable in view of the prima facie case, balance of convenience, and irreparable hardship.

Analysis: The petitioner's classification of the imported goods had already been accepted in an identical import in an earlier order-in-appeal. A circular issued by the Central Board of Excise and Customs also supported the petitioner's stand. On that basis, the petitioner established a prima facie case. Since the same factors also supported the balance of convenience, and the issue was covered by the circular and the earlier appellate order in the petitioner's own case, the Court held that insistence on full pre-deposit was unwarranted. Even without a separate plea of financial difficulty, the petitioner was found entitled to stay without condition pending disposal of the appeals.

Conclusion: The petitioner was entitled to unconditional stay of the impugned demand pending appeal, and the order requiring full pre-deposit was set aside.

Final Conclusion: The writ petitions succeeded and the customs appellate proceedings were protected by an unconditional stay, with a direction for expeditious disposal of the appeals on merits.

Ratio Decidendi: Where an assessee establishes a prima facie case supported by binding departmental circulars and an identical earlier appellate order, conditional pre-deposit may be dispensed with and stay granted pending appeal.

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