Conditional waiver of pre-deposit granted where clubbing of unit clearances raised merits issues at the stay stage.

A stay application on pre-deposit turned on whether the clearances of individual units should be clubbed for small-scale industry exemption and whether the required declarations had been filed. The Tribunal held that these issues related to the merits of the appeal and could not be finally determined at the stay stage, while also considering the applicant's financial condition. It granted a conditional waiver of pre-deposit, directed deposit of the specified sum within twelve weeks, and provided that on compliance the balance pre-deposit and penalty would stand waived and recovery would remain stayed during the appeal.

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Issues: Whether waiver of pre-deposit and stay of recovery should be granted in the stay application, and whether the clearances of the individual units were to be clubbed for deciding eligibility for small-scale industry exemption.

Analysis: The individual units had not exceeded the prescribed limit, but the question whether their clearances were required to be clubbed and whether the declarations were duly filed went to the merits of the appeal and could not be finally decided at the stay stage. The financial condition of the applicant was also taken into account. In view of the totality of circumstances, the Tribunal found it appropriate to grant conditional waiver of pre-deposit.

Conclusion: Waiver of pre-deposit was granted subject to deposit of Rs. 7,00,000 within twelve weeks, and upon such deposit the balance pre-deposit and penalty stood waived and recovery remained stayed during the appeal.

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