Prima facie notification benefit supported waiver of pre-deposit where the department lacked a reliable test report.

Imported goods declared as Ascorbyl Polyphosphate were claimed to qualify for concessional duty under Notification No. 23/98, and the record showed that this item was specifically listed in the notification. The departmental view was only that the sample contained phosphorus-bearing organic compounds, but no test report was produced and there was nothing to show that a chemical test had in fact been carried out. On that material, the denial of notification benefit was not supportable at the interim stage, and a strong prima facie case was found for waiver of pre-deposit and stay of recovery.

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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 demand on the imported goods.

Analysis: The imported goods were declared as Ascorbyl Polyphosphate and the claim for concessional duty rested on Notification No. 23/98. The record indicated that Ascorbyl Polyphosphate was specifically referred to in the list appended to the notification, while the departmental Chemical Examiner's view was only that the sample contained phosphorus-bearing organic compounds. No test report was supplied and there was nothing to show that any chemical test had actually been undertaken on the sample. On the material before it, the denial of the notification benefit was not seen as supportable at the interim stage.

Conclusion: The appellants established a strong prima facie case and were entitled to waiver of pre-deposit and stay of recovery.

Final Conclusion: Interim relief was granted in the appellants' favour, and the duty recovery was stayed pending further proceedings.

Ratio Decidendi: Where the material on record shows a strong prima facie entitlement to notification benefit and the departmental opinion does not reliably establish the contrary, waiver of pre-deposit and stay may be granted.

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