Pre-deposit waiver and recovery stay were granted where most duty was already paid and personal involvement was not shown.

Waiver of pre-deposit and stay of recovery were granted where the appellants had already deposited most of the duty demand and only a small balance remained. The penalty on the assessee was treated as prima facie vulnerable because the credit had been taken before the relevant penalty provisions came into force. Personal penalty on the company secretary was also not justified at the interim stage, since the notice and order disclosed no specific material showing his individual involvement in the alleged contravention. Recovery of the remaining duty, penalties and redemption fine was therefore stayed pending appeal.

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Issues: Whether waiver of pre-deposit and stay of recovery should be granted in respect of the disputed duty, penalties and redemption fine, and whether prima facie grounds existed against the company secretary for personal penalty.

Analysis: The appellants had already deposited almost the entire duty demand, leaving only a small balance. The penalty on the assessee was found prima facie vulnerable because the credit in question was taken before the relevant penalty provisions were brought into force. As regards the company secretary, the order and notice did not disclose material showing his specific involvement or participation in the alleged contravention, and his position alone was insufficient to justify personal penalty. On these considerations, recovery of the remaining duty, penalties and redemption fine was stayed.

Conclusion: Waiver of pre-deposit was granted and recovery of the balance duty, penalties and redemption fine was stayed, in favour of the assessee and the co-applicant.

Final Conclusion: The applications were allowed at the interim stage by dispensing with further deposit and protecting the applicants from recovery pending the appeal.

Ratio Decidendi: Interim relief of waiver and stay can be granted where the demand is substantially deposited, the penalty provisions appear inapplicable on a prima facie basis, and no specific material shows individual participation in the alleged contravention.

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