Prima facie exemption entitlement can justify waiver of pre-deposit and stay of recovery in duty disputes.

A printing machine supplied to an educational institution was claimed to fall within "scientific equipment" under an exemption notification. The Revenue treated it as ordinary machinery, but on a prima facie assessment the appellant appeared to satisfy the essential conditions for exemption. On that basis, the tribunal held that a prima facie case existed for waiver of pre-deposit and stay of recovery pending the dispute on duty demand.

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Issues: Whether the appellants had a prima facie case for waiver of pre-deposit and stay of recovery in respect of the duty demand arising from denial of exemption under Notification No. 10/97-C.E. dated 1-3-1997.

Analysis: The appellants claimed that the printing machine supplied to an educational institution fell within the expression "scientific equipment" in the exemption notification. The Revenue treated it as ordinary machinery. On a prima facie assessment, the appellants appeared to have satisfied the essential conditions for the exemption, and therefore a prima facie case was made out.

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

Ratio Decidendi: Where the assessee shows a prima facie entitlement to exemption under the relevant notification, pre-deposit may be waived and recovery stayed.

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