Pre-deposit and stay in duty appeal: arguable Rule 57A input dispute justified partial deposit and protection from recovery.

In a stay application on pre-deposit of duty, the question was whether the appellant had to deposit duty pending appeal, in light of the exclusion category under Rule 57A and the nature of the claimed inputs. The matter was treated as requiring detailed examination at the appeal stage, but as arguable for limited stay purposes. Partial pre-deposit was therefore directed, and recovery of the balance duty was stayed during the appeal on compliance with the deposit condition.

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Issues: Whether the appellant was required to make pre-deposit of duty pending disposal of the appeal.

Analysis: The application was considered in the context of the exclusion category under Rule 57A and the nature of the items claimed as inputs. The matter was found to require detailed examination at the stage of appeal, but the case was treated as arguable for the limited purpose of stay. On that basis, partial pre-deposit was directed while protecting the appellant from recovery of the balance amount during the appeal, subject to compliance.

Conclusion: The appellant was directed to deposit Rs. 50,000, and upon compliance, recovery of the remaining duty was stayed during the pendency of the appeal.

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