Penalty beyond the show cause notice led to unconditional stay and remand for merits consideration.

Penalty could not be sustained where the show cause notice did not propose it, and the record showed duty had already been paid before notice, giving the appellant a prima facie case. On that basis, the appellate authority's order was treated as lacking proper application of mind. Unconditional stay was therefore granted, and the appeals were remanded to the Commissioner (Appeals) for hearing on merits and disposal according to law.

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Issues: Whether the stay application should be allowed unconditionally and whether the appeals should be remanded for decision on merits.

Analysis: The impugned order was found to have been passed without proper consideration of the show cause notice and the merits of the case. The notice did not propose penalty, yet penalty had been imposed and the stay condition required deposit towards penalty. The record also indicated that the duty had already been paid before the show cause notice, and the appellant therefore showed a prima facie case. In these circumstances, the order lacked proper application of mind and the matter required fresh consideration by the appellate authority.

Conclusion: Unconditional stay was granted and the appeals were remanded to the Commissioner (Appeals) to hear the appellant on merits and dispose of the matter according to law.

Final Conclusion: The appellant obtained interim relief and a fresh merits-based adjudication before the Commissioner (Appeals), while the merits of the dispute remained open.

Ratio Decidendi: Where penalty is imposed without a corresponding proposal in the show cause notice and the record shows a prima facie case, unconditional stay and remand for merits consideration are justified.

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