Prima facie waiver of pre-deposit in central excise dispute over marketability and silver residue exemption

The dispute concerned liability to duty and penalty under the Central Excise Act and Central Excise Rules in relation to processing materials and silver residue. The Tribunal noted reliance on earlier decisions that hypo solution intended for instant use had not been shown by the department to be marketable, and also considered the claimed exemption for silver residue under the relevant notification. On the material then available, it formed a prima facie view that the appellant had a strong case, so pre-deposit of duty and penalty was waived and recovery was stayed pending disposal of the appeal.

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

Analysis: The appeal concerned duty and penalty imposed under the Central Excise Act and the Central Excise Rules in relation to processing materials and silver residue. The Tribunal noted the assessee's reliance on earlier decisions holding that hypo solution intended for instant use had not been shown to be marketable by the department. It also noted the contention regarding exemption in respect of silver residue under the relevant notification. On the materials placed before it, the Tribunal formed a prima facie view that the appellant had a strong case.

Conclusion: The appellant was entitled to waiver of pre-deposit and stay of recovery during the pendency of the appeal.

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