Broad exemption coverage under Chapter 34 justified waiver of pre-deposit at the stay stage.

A broad exemption entry covering Chapter 34 was treated as sufficient to support interim relief where the goods were prima facie described as laundry soap. The text notes that serial No. 3 of the Table to Notification No. 23/99-C.E. covered the whole chapter, including laundry and carbolic soap, and this breadth created a prima facie case for waiver of pre-deposit of duty and penalty at the stay stage. On that basis, waiver of pre-deposit was granted.

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Issues: Whether the appellants were entitled to waiver of pre-deposit of duty and penalty at the stay stage.

Analysis: The goods were stated to fall under Chapter 34 and to be used as laundry soap. The entry in serial No. 3 of the Table to Notification No. 23/99-C.E. was noted to cover the entire Chapter 34 and to include laundry and carbolic soap, indicating a broad coverage. On this basis, the appellants were held to have made out a prima facie case for relief at the interim stage.

Conclusion: Waiver of pre-deposit of duty and penalty was granted in favour of the appellants.

Ratio Decidendi: Where the notified exemption entry broadly covers the relevant chapter and the goods prima facie answer the description in that entry, pre-deposit may be waived at the stay stage.

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