Rule 57CC waiver for captively consumed exempt goods granted on strong prima facie case and inconsistent departmental treatment.

In a central excise dispute on the application of Rule 57CC to captively consumed denatured spirit, the Tribunal noted that the department was taking conflicting views on the same factual pattern, particularly where exempted goods were not sold. Because similarly placed assessees were being treated differently, the applicant established a strong prima facie case for interim relief. On that basis, the Tribunal found that pre-deposit was unnecessary at the interim stage and granted waiver of pre-deposit.

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Issues: Whether the applicant had made out a strong prima facie case for waiver of pre-deposit in a central excise dispute concerning application of Rule 57CC to captively consumed denatured spirit.

Analysis: The order records that the department was taking diametrically opposite views on the same factual situation, namely whether Rule 57CC applied where exempted goods were captively consumed and not sold. The Tribunal noted that similarly placed assessees were being treated differently and accepted that this gave rise to a substantial prima facie case in the applicant's favour. On that basis, the requirement of pre-deposit was considered unnecessary at the interim stage.

Conclusion: The applicant was held entitled to waiver of pre-deposit.

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