Excisable goods exemption for fabricated pipelines supported waiver of pre-deposit and stay of duty recovery pending appeal.

Fabricated pipelines laid in trenches were examined at the interim stage to determine whether they remained movable excisable goods or fell within the exemption under Notification No. 67/95-C.E. The Tribunal also considered the applicant's reliance on the departmental circular under Section 37B of the Central Excise Act. On that basis, it found a strong prima facie case that, even if the pipes were treated as excisable goods, the exemption could apply. Waiver of pre-deposit was therefore granted and recovery of duty and penalties was stayed pending the appeals.

---

---

Issues: Whether the applicants had made out a prima facie case for waiver of pre-deposit and interim protection in respect of duty and penalties, having regard to the claim that the fabricated pipelines were either not excisable goods or were covered by the exemption under Notification No. 67/95-C.E.

Analysis: The order notes the competing stands on whether the fabricated pipes, once laid in trenches, retained the character of movable excisable goods. It records the applicant's reliance on the departmental circular under Section 37B of the Central Excise Act and on Notification No. 67/95-C.E., which exempts capital goods manufactured in a factory and used within the factory of production. The Tribunal considered, at the interim stage, that if the pipes were treated as excisable goods, the benefit of the notification would be available, and thus the applicants had shown a strong prima facie case.

Conclusion: The applications for waiver of pre-deposit were allowed and recovery of duty and penalties was stayed during the pendency of the appeals.

---