Pre-deposit waiver on prima facie limitation and hardship where delayed classification could not make duty liability provisional.

Waiver of pre-deposit may be granted where the assessee shows a prima facie case on limitation and financial hardship. The Tribunal noted that a demand challenged as time-barred could not be validated merely because the RT-12 return was completed later, and delayed finalisation of the classification list did not, by itself, make the clearances provisional or extend the time for issuing a demand notice under Section 11A. The earlier Rasoi Ltd. decision was treated as factually distinguishable. Interim relief was therefore justified on the basis of prima facie merits and hardship, subject to a personal bond for the amount ultimately found due.

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Issues: Whether the appellants were entitled to waiver of pre-deposit in view of the prima facie case on limitation and admissibility of the small scale exemption.

Analysis: The demand was challenged as time-barred on the footing that the relevant notice under Section 11A had not been validly issued and that the RT-12 completion could not extend limitation or convert the matter into a provisional assessment. The order also noted that the earlier decision in Rasoi Ltd. was factually distinguishable and that delayed finalisation of the classification list could not by itself justify treating the clearances as provisional. Prima facie financial hardship was also placed before the Tribunal.

Conclusion: The appellants were granted waiver of pre-deposit, subject to furnishing a personal bond for the amount that may ultimately be held due.

Final Conclusion: Interim relief was granted on a prima facie case and hardship, while the appeal was sent to the proper bench for further proceedings on the merits.

Ratio Decidendi: A delayed finalisation of classification cannot, by itself, justify treating duty liability as provisional or extend the department's time for demand notice, and pre-deposit may be waived where a prima facie case and hardship are shown.

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