Assessable value valuation dispute leads to waiver of pre-deposit and stay of recovery pending Larger Bench ruling.

Where the inclusion of software value in the assessable value of computer systems was already under reference to a Larger Bench, Tribunal practice favoured maintaining status quo by waiving pre-deposit and staying recovery pending authoritative determination. The earlier view supporting inclusion was adverse to the applicants, but its correctness was in doubt and the same issue was sub judice before the Larger Bench. Without expressing any prima facie view on merits, the Tribunal treated the pending reference and the disputed valuation question as sufficient grounds to defer recovery until the larger bench ruling.

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Issues: Whether pre-deposit of the duty demand could be waived and recovery stayed pending decision of the Larger Bench on the identical issue relating to inclusion of software value in the assessable value of computer systems.

Analysis: The earlier Tribunal view holding that software value is includible in the assessable value was directly adverse to the applicants, but the correctness of that view had already been questioned and referred to the Larger Bench. In such circumstances, and without expressing any prima facie view on the merits, the established Tribunal practice was to maintain status quo where the same issue was sub judice before a Larger Bench. The dispute over valuation and the large outstanding amount also supported deferment of recovery until authoritative resolution of the reference.

Conclusion: Pre-deposit was waived and recovery of the duty demand was stayed until the Larger Bench decided the referred issue.

Ratio Decidendi: When the correctness of the governing decision on an identical issue is under reference to a Larger Bench, status quo may be maintained by waiving pre-deposit and staying recovery pending that decision.

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