Stay-stage exemption for texturised yarn was denied on a prima facie view, requiring full pre-deposit of the duty demand.

At the stay stage, entitlement to exemption under Notification No. 35/95-C.E. for texturised yarn made from duty-paid yarn was examined only on a prima facie basis. The record indicates that the exemption was considered unavailable because the yarn was cleared from the factory in texturised form, and on that footing complete waiver of the confirmed duty demand was refused; the appellant was directed to pre-deposit the entire duty amount for the stay petition.

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Issues: Whether the appellant was entitled, at the stay stage, to exemption under Notification No. 35/95-C.E. dated 16-3-95 so as to avoid pre-deposit of the confirmed duty demand.

Analysis: The appellant sought the benefit of the exemption for texturised yarn manufactured from duty-paid yarn. The order records a prima facie view that the exemption was not available because the yarn was cleared from the factory in texturised form, and on that basis the demand did not warrant complete waiver at the interim stage.

Outcome: The appellant was directed to pre-deposit the entire duty amount demanded for the purpose of the stay petition.

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