Pre-deposit limits under departmental stay instructions cannot exceed the prescribed 20% threshold and must be applied consistently.

The appellate authority could not insist on a pre-deposit far above the 20% stay condition fixed by departmental instructions. Where the assessee had already remitted more than 33% of the total demand, a further insistence on deposit of the balance amount demanded as a precondition for stay was inconsistent with the governing office memorandum and could not be sustained. The pre-deposit demand was set aside, and the appeal was directed to be heard and decided on merits expeditiously.

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Issues: Whether the appellate authority could insist on a pre-deposit of a sum far exceeding 20% of the disputed demand when departmental instructions prescribed 20% as the precondition for granting stay.

Analysis: The assessee had already remitted more than 33% of the total demand. The departmental office memorandum required payment of 20% of the demand as the precondition for stay. In that background, the insistence on a deposit of Rs. 3,67,05,090/- out of Rs. 5,54,65,330/- was inconsistent with the governing departmental instruction and could not be sustained.

Conclusion: The impugned demand for pre-deposit was set aside in favour of the assessee, and the appeal was directed to be decided on merits expeditiously.

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