SSI exemption and limitation principles supported waiver of pre-deposit and stay of recovery pending appeal.

A prima facie case for SSI exemption under Notification No. 175/86 supported waiver of pre-deposit where the second unit had been reflected in the approved classification list and the later SSI certificate endorsement covered both units. On that basis, exemption could not be denied merely because the second unit was separately located. The plea of limitation also had prima facie support, since part of the demand appeared to extend beyond six months and there was no strong indication of suppression of facts sufficient to defeat limitation at that stage. Waiver of pre-deposit and stay of recovery were therefore justified pending appeal.

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Issues: Whether the applicants were entitled to waiver of pre-deposit and stay of recovery pending appeal in view of a prima facie case on eligibility to exemption under Notification No. 175/86 and the plea of limitation.

Analysis: The applicants' second unit had been taken into account in the approved classification list and the later endorsement of the SSI certificate covered both units. On that basis, there was prima facie support for the claim that the exemption could not be denied merely because the second unit was separately located. The demand also appeared to cover a period beyond six months, and there was, at this stage, no strong indication of suppression of facts sufficient to defeat the plea of limitation.

Conclusion: The applicants were entitled to waiver of pre-deposit and stay of recovery.

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