Pre-deposit waiver and recovery stay denied in full, but conditional protection granted pending appeal disposal.

Complete waiver of pre-deposit was refused where the demand and penalty arose from alleged misclassification of tyres and suppression of production, supported by departmental records. The Tribunal found that the appellant had not established a prima facie case for total waiver and that the financial material did not justify full dispensation of the pre-deposit requirement. However, balancing the convenience of the parties, it protected the appellant from immediate recovery beyond the ordered deposit. The appellant was directed to deposit Rs. 1 crore, and on such deposit the balance duty and full penalty were waived and recovery stayed pending disposal of the appeal.

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Issues: Whether complete waiver of pre-deposit and stay of recovery should be granted pending disposal of the appeal.

Analysis: The demand and penalty were founded on allegations of misclassification of tyres and suppression of production, supported by internal records and other materials relied upon by the department. On the materials placed before it, the Tribunal found that the appellant had not made out a prima facie case for complete waiver. It also considered the financial position and held that the record did not justify total dispensation of the pre-deposit requirement, though the balance of convenience warranted protection of the appellant against immediate recovery beyond the ordered deposit.

Conclusion: Complete waiver of pre-deposit was declined. The appellant was directed to deposit Rs. 1 crore and, on such deposit, the balance duty and the full penalty were waived and recovery stayed till disposal of the appeal.

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