Prima facie exemption for wind mill parts justified waiver of pre-deposit and stay of recovery pending appeal.

Electric cables cleared for wind mills were found prima facie to fall within the exemption for parts of wind mills under Notification No. 205/88-C.E., based on the integrated design of the wind mill and the generator as a constituent part. That prima facie view justified waiver of pre-deposit and stay of recovery pending appeal. The Tribunal also noted reversal of input credit, which protected the revenue to that extent.

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Issues: Whether electric cables cleared by the appellant prima facie qualified for exemption under Notification No. 205/88-C.E. as parts of wind mills, so as to justify waiver of pre-deposit and stay of recovery.

Analysis: The Tribunal noted the schematic design of the wind mill and observed that the generator formed an integrated part of the wind mill. On that prima facie view, the cited precedent was considered applicable. The Tribunal also took note of the reversal of input credit, treating the revenue as safeguarded to that extent.

Conclusion: The appellant was granted waiver of pre-deposit of duty and recovery was stayed pending disposal of the appeal.

Ratio Decidendi: Where the disputed goods appear prima facie to be covered by the exemption as part of the wind mill, pre-deposit may be waived and recovery stayed pending appeal.

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