Prima facie treatment of spent diatomaceous earth supported waiver of pre-deposit and stay of duty recovery.

Spent diatomaceous earth arising after filtration was treated as prima facie outside the scope of a manufactured product, following the Larger Bench view on spent earth. On that basis, the Tribunal found that the appellant had established a strong prima facie case for interim relief. Waiver of pre-deposit was therefore granted, and recovery of duty and penalty was stayed pending the appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit and stay of recovery of duty and penalty.

Analysis: The Tribunal noted that the disputed material was spent diatomaceous earth arising after filtration and found that the Larger Bench ruling on spent earth, treating it as not a manufactured product arising from a manufacturing process, was prima facie applicable. On that basis, the Tribunal held that the appellant had shown a strong prima facie case for waiver at the interim stage.

Conclusion: The appellant was entitled to waiver of pre-deposit and stay of recovery of duty and penalty pending the appeal.

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