Pre-deposit waiver and recovery stay granted on arguable jurisdiction, natural justice concerns, limitation, and financial hardship.

Waiver of pre-deposit and stay of recovery were granted where the applicants raised an arguable challenge to the adjudicating authority's jurisdiction, showed a prima facie breach of natural justice because documents used to enhance assessable value had not been supplied, and pointed to possible delay beyond six months in issuing the show cause notice after seizure. Their financial hardship also supported interim protection. On these combined grounds, the matter was treated as fit for protection pending further proceedings.

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Issues: Whether the applicants were entitled to waiver of pre-deposit and stay of recovery of the penalty on the grounds of arguable lack of jurisdiction, prima facie breach of natural justice, and financial hardship.

Analysis: The applicants questioned the adjudicating authority's jurisdiction and complained that the documents relied upon for enhancement of assessable value had not been supplied, thereby denying a reasonable opportunity to meet the case against them. The record also indicated, prima facie, that the show cause notice may have been issued beyond six months from the date of seizure. In view of the applicants' financial background and the prima facie possibility of non-compliance with natural justice, the case was considered fit for interim protection.

Conclusion: Waiver of pre-deposit and stay of recovery were granted.

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