Pre-deposit dispensed where duty demand invoked extended limitation and recovery was stayed during appeal.

A duty demand raised by show cause notice after amendment of the proviso to Section 11-A was challenged on pre-deposit. The Tribunal noted that the notice invoked the extended period of limitation and that earlier Tribunal authority had followed the relevant High Court ruling on the jurisdictional objection. In these circumstances, insisting on deposit of the duty amount was treated as causing undue hardship, so pre-deposit was dispensed with and recovery was stayed during the appeal.

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Issues: Whether the applicants were entitled to dispensation of the pre-deposit of the duty demand and protection against recovery during the pendency of the appeal.

Analysis: The appeal related to a duty demand raised through a show cause notice issued by the Superintendent after the amendment to the proviso to Section 11-A. The Tribunal noted that the notice had invoked the extended period of limitation and that earlier Tribunal authority had followed the relevant High Court ruling on the jurisdictional objection. In view of the legal position and the circumstances of the case, insisting on deposit of the duty amount was considered to cause undue hardship.

Outcome: The pre-deposit of Rs. 53,577.11 was dispensed with and the Revenue was directed not to pursue recovery proceedings during the pendency of the appeal.

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