Prima facie case for waiver of pre-deposit where duty demand relied on untested production norms, leading to stay of recovery.

A prima facie case for waiver of pre-deposit and stay of recovery arose where the duty demand was based on an estimated electricity-consumption norm for producing M.S. ingots, but no such production norms had been fixed under the relevant rule. Because the demand rested on an untested assumption rather than established evidence, interim relief was justified. The requirement to pre-deposit duty and penalty was dispensed with, and recovery was stayed pending appeal.

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Issues: Whether the applicants had made out a prima facie case for waiver of pre-deposit and stay of recovery pending appeal.

Analysis: The demand was founded on an estimated norm of electricity consumption for production of M.S. ingots. The record showed that such production norms had not been fixed under the relevant rule, and the demand was therefore based on an untested assumption rather than established evidence. In these circumstances, the applicants demonstrated a prima facie case for interim relief.

Conclusion: The requirement of pre-deposit of duty and penalty was dispensed with and recovery was stayed pending the appeal.

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