Conditional waiver of pre-deposit depends on prima facie case, hardship, and adequate support for the core defence.

A conditional waiver of pre-deposit can be granted where the applicant shows a prima facie case and financial hardship, but the Tribunal may still require a partial deposit if the record does not adequately support the defence on the core allegation. On the valuation-related components, including raw material cost, sales tax, octroi, handling charges, drawing and designing charges, and profit element, the Tribunal found a prima facie case for relief in several respects. However, it was not satisfied with the documents supporting the plea that excise duty was to be reimbursed in relation to the disputed allegation, so it ordered a balance pre-deposit and stayed recovery of the remaining duty and penalty.

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Issues: Whether waiver of pre-deposit of duty and penalty, and stay of recovery, should be granted on the facts of the case.

Analysis: The Tribunal examined the prima facie case on valuation-related components, including raw material cost, sales tax, octroi, handling charges, drawing and designing charges, and profit element. It found a prima facie case for relief in respect of several components, but not for the applicant concerned with the Mahindra-related allegations. The Tribunal also considered the plea of financial hardship and the nature of the alleged misdeclaration, and held that the certificate and purchase documents did not adequately support the plea that excise duty was to be reimbursed.

Conclusion: Conditional waiver of the balance pre-deposit was granted on deposit of Rs. 2,00,000 within the stipulated time, and recovery of the remaining duty and penalty was stayed.

Ratio Decidendi: In a stay application, waiver of pre-deposit may be granted where a prima facie case and hardship are shown, but the Tribunal may still insist on a partial deposit where the record does not satisfactorily support the applicant's defence on the core allegation.

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