Prima facie case in excise compliance disputes justified refusal of stay where statutory records and procedure were not followed.

Non-maintenance of statutory records and failure to follow the prescribed excise procedure, including non-intimation to the department, left the Department with a stronger prima facie case against the applicants. The plea of absence of mala fides did not outweigh those compliance defaults, and the claim of financial hardship was not pressed. On that basis, stay of recovery was refused and the stay application was rejected.

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Issues: Whether stay of recovery should be granted on the basis of the materials placed, the plea of absence of mala fides, and the claim that no financial hardship was shown.

Analysis: The applicants admitted non-maintenance of statutory records and non-compliance with the prescribed procedure, including failure to intimate the excise department. On that footing, the Department was held to have a stronger prima facie case. The plea of financial hardship was not pressed.

Outcome: Stay was refused and the application was rejected.

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