Prima facie case for pre-deposit waiver where ceramic mosaic tile pieces showed no disclosed marketability and captive consumption exemption support.

Individual ceramic pieces used in mosaic tiles were disputed under Chapter Headings 69.06/69.05, but the record did not show any sale or purchase of the goods and the marketability material relied on by the department was not disclosed to the appellants. The Tribunal also noted that duty had been paid on the finished mosaic tiles under Chapter Heading 68.07 for a later period, which supported a prima facie claim to captive consumption exemption under Notification No. 67/95. On that basis, a strong prima facie case was found for waiver of pre-deposit, and recovery was stayed pending the appeals.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit of duty and stay of recovery in respect of individual ceramic pieces used in mosaic tiles.

Analysis: The demand related to glazed and unglazed ceramic pieces classified under Chapter Headings 69.06/69.05 of the Central Excise Tariff Act, 1985. The record, as noticed in the remand order, did not show any sale or purchase of the disputed goods, and the material relied upon by the department on marketability was not disclosed to the appellants. The Tribunal also noted that the appellants had paid duty on the complete mosaic tiles under Chapter Heading 68.07 for the relevant later period, which supported prima facie availability of captive consumption exemption under Notification No. 67/95.

Conclusion: A strong prima facie case for waiver of pre-deposit was made out, and pre-deposit of duty was dispensed with with stay of recovery pending the appeals.

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