Prima facie exemption claim supported by technical certificates justified waiver of pre-deposit and stay of recovery.

At the interim stage, the appellants established a prima facie case for waiver of pre-deposit and stay of recovery on the duty and penalty demand. The tribunal held that the Commissioner could not reject the exemption claim for atraumatic needled sutures by substituting a personal visual opinion for the technical opinions and manufacturer certificates produced by the appellants. As the certificates supported the character of the goods and the exemption claim under Notification No. 5/98, interim protection was granted pending disposal of the appeal.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit and stay of recovery in respect of the duty and penalty demand, and whether the departmental finding rejecting the exemption claim could be sustained at the interim stage.

Analysis: The appellants claimed exemption for atraumatic needled sutures under Notification No. 5/98 and relied on certificates from the needle manufacturers to support the character of the goods. The order held that the Commissioner, at the prima facie stage, could not substitute personal visual opinion for the technical opinions and certificates produced by the appellants. On that basis, the appellants were found to have made out a case for interim protection.

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

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