Pre-deposit relief in disputed capacity re-determination matters may justify partial stay of duty recovery during appeal.

The appellants sought waiver of pre-deposit and stay of recovery of duty demanded under Rule 96ZP(3), challenging the re-determination of installed capacity on specified parameters. As the capacity determination remained disputed and the appellants relied on the unit's working and closure period, the matter warranted only partial relief at the pre-deposit stage. The appellants were directed to deposit Rs. 5 lakhs within 10 weeks, and upon such deposit, recovery of the balance duty was stayed during pendency of the appeal.

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Issues: Whether the appellants were entitled to waiver of pre-deposit of the duty demanded under Rule 96ZP(3), and consequent stay of recovery during pendency of the appeal.

Analysis: The demand was based on re-determination of capacity on the basis of parameters, while the appellants had continuously objected to the re-determination. In view of this dispute and the submissions regarding the working and closure period of the unit, the matter was considered fit for partial relief on pre-deposit.

Outcome: The appellants were directed to deposit Rs. 5 lakhs within 10 weeks, and on such deposit, recovery of the balance duty was stayed during pendency of the appeal.

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