Pre-deposit waiver requires a strong prima facie case; unilateral duty stoppage supported partial stay and limitation defence failed.

For waiver of pre-deposit in a duty demand, the applicant must show a strong prima facie case. Where the assessee had earlier paid duty on the disputed goods but later stopped payment without intimation or a revised declaration, the Tribunal treated the short-payment as prima facie established. It also found that invocation of the larger limitation period was prima facie justified, and the plea based on departmental knowledge and delayed notice was not accepted at that stage. Full waiver was declined, and only partial interim relief was granted with a directed deposit, while the balance demand and penalties were stayed.

---

---

Issues: Whether the assessee made out a strong prima facie case for complete waiver of pre-deposit and stay of recovery in a duty demand matter, and whether the demand was prima facie vulnerable on limitation.

Analysis: The assessee had earlier paid duty on the very goods in dispute and later discontinued payment without intimation or revised declaration. On the materials before it, the Tribunal found that such unilateral cessation of duty payment supported the view that duty had been short-paid. In the absence of intimation, invocation of the larger period was held to be prima facie justified. The Tribunal also noted that the plea of limitation based on departmental knowledge and delayed issuance of notice could not be accepted at that stage, and that the cited earlier order did not assist the assessee in view of subsequent conduct. Considering the material, the Tribunal held that a strong prima facie case for full waiver was not made out.

Conclusion: The assessee was directed to deposit Rs. 40,00,000 towards the duty demand, and on such deposit the balance duty and the penalties were waived and recovery stayed.

Final Conclusion: Interim relief was granted only to a limited extent, with partial pre-deposit directed and the remainder of the demand and penalties kept in abeyance.

Ratio Decidendi: For waiver of pre-deposit, the applicant must establish a strong prima facie case; where duty payment is stopped unilaterally without intimation and larger limitation is prima facie attracted, full waiver may be declined and only partial stay granted.

---