Interim stay on duty demand for leased capital goods granted pending appeal after prima facie case and irreparable injury test.

Interim stay was granted against a recovery order arising from removal of capital goods on lease without payment of duty. The controlling test for interim protection was whether the appellant had established a prima facie case and whether refusal of stay would cause irreparable injury. On the materials and cited authorities, the issue required examination in appeal and warranted interim protection pending final adjudication. The stay application was accordingly allowed, and the impugned order remained stayed until disposal of the appeal.

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Issues: Whether the impugned recovery order should be stayed pending disposal of the appeal.

Analysis: The disputed demand arose from removal of capital goods on lease without payment of duty. For the purpose of interim relief, the controlling consideration was whether the appellant had shown a prima facie case and whether denial of stay would cause irreparable injury. The materials and the cited authorities were sufficient to show that the issue required examination in appeal and that interim protection was warranted pending final adjudication.

Conclusion: Stay of the impugned order was granted and the stay application was allowed.

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