Pre-deposit waiver and stay granted where suppression was doubtful and the effect of a clarificatory notification remained open.

Waiver of pre-deposit and stay of recovery were granted where the appellants had made declarations about their manufacturing activity and sought departmental comments, creating a prima facie doubt on the allegation of suppression. The demand related to a period before the explanatory notification dated 27-3-1990, and whether that clarification was merely declaratory and capable of retrospective operation was left to be decided in the appeal. At the interlocutory stage, the materials also disclosed sufficient doubt on the applicability of the extended period of limitation, supporting interim protection pending final disposal.

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Issues: Whether the appellants were entitled to waiver of pre-deposit and stay of recovery pending appeal in a dispute concerning exemption to HDPE woven sacks, where the department alleged suppression and the effect of a subsequent explanatory notification was in issue.

Analysis: The appellants had made declarations regarding their manufacturing activity and had sought departmental comments, which created a prima facie doubt in their favour. The demand related to a period prior to the explanatory notification of 27-3-1990, and the question whether that explanation was merely clarificatory and capable of retrospective effect was an issue for the appeal. At the interlocutory stage, the materials disclosed sufficient doubt on the allegation of suppression and on the applicability of the extended period of limitation.

Conclusion: Waiver of pre-deposit and stay of recovery were granted in favour of the appellants pending disposal of the appeal.

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