Paper transfer of capital goods and continued use in the same premises led to stay of duty recovery pending appeal.

Duty was disputed on capital goods transferred only on paper while the goods remained at the same premises and continued to be used for the same manufacturing purpose. The tribunal considered whether such a paper transfer justified recovery of duty and, pending appeal, granted stay of recovery. The disputed amount was stayed until disposal of the appeal.

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Issues: Whether duty could be demanded on capital goods transferred on paper while the goods continued to remain at the same premises and were used for the same manufacturing purpose; whether recovery of the disputed amount should be stayed pending disposal of the appeal.

Outcome: Stay granted and recovery of the disputed amount stayed till disposal of the appeal.

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