Prima facie case and financial hardship requirements led to partial pre-deposit and conditional stay of recovery.

In a stay application before CEGAT, the Tribunal declined total dispensation of penalty because the appellants did not establish a prima facie case for full waiver. It also noted that the valuation adopted for saffron was not supported by evidence and that the plea of financial hardship was unsubstantiated. Balancing these factors, the Tribunal ordered a partial pre-deposit and granted stay of recovery of the balance demand on compliance with the deposit condition.

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Issues: Whether the appellants were entitled to total dispensation of the penalty amount in the stay application and whether recovery of the balance demand should be stayed pending disposal of the appeal.

Analysis: The appellants failed to establish a prima facie case for complete waiver of the penalty. The order also noted that the valuation adopted for saffron was not supported by evidence and that the plea of financial hardship was unsubstantiated. Balancing these factors, the Tribunal directed a partial pre-deposit and granted stay of recovery of the balance amount on compliance.

Conclusion: Total dispensation was declined, but the appellants were granted conditional stay of recovery upon depositing Rs. 10 lakhs within the stipulated time.

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