Pre-deposit and stay of recovery granted on a prima facie view, with classification and limitation issues reserved for final hearing.

In a classification dispute involving a limitation plea and an alternative exemption claim, the note states that interim relief on recovery depends on a prima facie assessment of the record. It records that the limitation issue and the effect of the classification plea were left for final hearing, while no financial hardship was pleaded. On that basis, a partial pre-deposit was directed as a condition for waiver of duty and penalty and stay of recovery pending final disposal.

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Issues: Whether the applicants should be directed to make a pre-deposit and obtain stay of recovery pending final hearing of the appeal, in view of the classification dispute, limitation plea, and alternative claim for exemption.

Analysis: The order records only a prima facie assessment of the material, notes that the limitation issue and the effect of the classification plea require consideration at the final hearing, and finds no pleaded financial hardship. It therefore balances the matter by directing a partial deposit as a condition for interim relief.

Outcome: The applicants were directed to deposit Rs. 10 lakhs within two months, and upon such deposit, waiver of duty and penalty and stay of recovery were granted pending final disposal.

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