Waiver of pre-deposit and stay of recovery granted on a strong prima facie case supported by prior Tribunal orders.

Pre-deposit of duty and penalty was waived in a stay application where the assessee showed a strong prima facie case based on exemption notifications and earlier Tribunal orders in similar matters. As no financial hardship was pleaded, the Tribunal nevertheless found the dispute fit for protection from recovery and stayed recovery of the disputed amounts until the appeal was heard on merits.

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Issues: Whether pre-deposit of duty and penalty should be dispensed with in a stay application, and whether recovery of the disputed amounts should be stayed pending disposal of the appeal.

Analysis: The request for waiver was supported by the plea that the product was covered by exemption notifications and by earlier Tribunal orders in similar matters. The application was pressed on the basis of a strong prima facie case, and no plea of financial hardship was advanced. In view of the earlier Tribunal decisions relied upon, the case was considered fit for waiver of pre-deposit and for protection against recovery until the appeal was heard.

Outcome: Pre-deposit of duty and penalty was dispensed with and recovery was stayed till hearing of the main appeal. The appeal was directed to be listed for hearing on merits.

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