Rule 57F treatment of PVC waste supported waiver of pre-deposit and stay of recovery on a strong prima facie case.

PVC waste was treated as eligible for the procedure under Rule 57F(2), now Rule 57F(3), on the basis of the binding Larger Bench view. A later decision relied on by the applicants did not displace that precedent at the interim stage, so the Tribunal accepted that the applicants had established a strong prima facie case. On that footing, waiver of pre-deposit and stay of recovery were granted pending appeal.

---

---

Issues: Whether the applicants had made out a prima facie case for waiver of pre-deposit of duty and stay of recovery in relation to PVC waste under Rule 57F(3) of the Central Excise Rules.

Analysis: The Tribunal relied on the Larger Bench view that the procedure under Rule 57F(2), now Rule 57F(3), is permissible in the case of waste. It noted that the attempted distinction based on a later decision did not negate the binding effect of the Larger Bench ruling for purposes of interim relief. In that background, the applicants were found to have a strong prima facie case.

Conclusion: The applicants were entitled to waiver of pre-deposit and stay of recovery pending appeal.

---