Departmental knowledge of clearances strengthened the limitation plea and justified substantial waiver of pre-deposit in interim relief.

Prima facie departmental knowledge of clearances, evidenced by the Jurisdictional Range Superintendent's endorsement on the assessee's letter, was treated as supporting a strong limitation plea for the later demand. On that interim basis, the bulk of the duty demand was regarded as time-barred for the purpose of stay, and substantial waiver of pre-deposit was granted. Pre-deposit was confined to Rs. 15,000, with the balance of duty and penalty stayed pending appeal subject to compliance.

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Issues: Whether waiver of pre-deposit and stay of recovery were warranted, and whether the demand for the later period was prima facie time-barred in view of departmental knowledge.

Analysis: The order records a prima facie view that the Department had knowledge of the clearances from 15-1-1992 through the endorsement of the Jurisdictional Range Superintendent on the assessee's letter. On that basis, the plea that the subsequent demand was barred by limitation was found to be strong, and the bulk of the duty demand was treated as time-barred for the purpose of interim relief.

Conclusion: Partial waiver of pre-deposit was granted, with pre-deposit confined to Rs. 15,000 and the balance duty and penalty stayed pending appeal upon compliance.

Final Conclusion: Interim relief was granted substantially in favour of the appellant, but the appeal itself remained pending subject to compliance with the pre-deposit direction.

Ratio Decidendi: For interim relief, prima facie departmental knowledge of clearances can support a strong plea of limitation and justify substantial waiver of pre-deposit.

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