Prima facie case for stay established where reprocessing records and RG-1 entries supported interim relief against duty and penalty recovery.

Documentary evidence showing removal of goods for reprocessing, their return after reprocessing, and corresponding RG-1 entries was treated as sufficient to establish a strong prima facie case for interim relief. Comparable facts had already attracted the benefit of Notification No. 217/86-C.E. and Notification No. 67/95-C.E., which supported the applicants' claim. On that basis, recovery of the duty and penalty was stayed during the pendency of the appeals, and the demand was kept in abeyance until final hearing.

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Issues: Whether the applicants had made out a prima facie case for waiver of pre-deposit and stay of recovery of the duty and penalty demanded on goods cleared for reprocessing and taken back into the factory.

Analysis: The documents on record showed movement of goods for reprocessing, their return after reprocessing, and corresponding RG-1 entries at the time of removal and receipt. It was also noted that, in respect of a similar period, the benefit of Notification No. 217/86-C.E. and Notification No. 67/95-C.E. had already been extended on comparable facts. On that basis, the applicants were held to have established a strong prima facie case for interim relief.

Conclusion: Stay of recovery of the entire duty and penalty was granted during the pendency of the appeals.

Final Conclusion: Interim protection was extended to the applicants, and the demand was kept in abeyance until the appeals were finally heard.

Ratio Decidendi: Documentary evidence of removal for reprocessing and corresponding accounting entries can establish a prima facie case for interim stay where similar relief has been granted on comparable facts.

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