Material alteration of a show cause notice justified waiver of pre-deposit and stay of recovery.

A corrigendum that materially substituted the basis of a show cause notice altered the complexion of the demand, so the original notice founded on shortage could not prima facie be sustained on the record. Because the applicants showed a prima facie case after the demand basis was changed, waiver of pre-deposit of duty and penalty was granted and recovery was stayed pending disposal of the appeal.

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Issues: Whether the applicants were entitled to waiver of pre-deposit of duty and penalty and stay of recovery on the ground that the original show cause notice had been materially altered by a corrigendum.

Analysis: The application concerned a demand arising from alleged non-accountal of aluminium scrap removed under Rule 57F(2). A subsequent corrigendum substituted the basis of demand and changed the complexion of the notice. On the record, the original demand founded on shortage could not prima facie be maintained once the relevant portion of the notice had been substituted. The applicants therefore made out a prima facie case for dispensing with pre-deposit.

Conclusion: Waiver of pre-deposit of duty and penalty was granted and recovery was stayed pending disposal of the appeal.

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