Pre-deposit waiver allowed where factory gate clearances and depot pricing supported a strong prima facie case for interim relief.

Waiver of pre-deposit of duty and penalty was granted on the basis of a strong prima facie case. The benefit of Notification No. 13/2000-C.E. had been denied because the plant was treated as not being an integrated steel plant, and duty was demanded on depot-clearance price. The applicants argued that, even if the notification benefit was unavailable, they also made clearances from the factory gate to independent customers, so factory gate price was available for assessment. The existence of factory gate clearances and duty paid on depot clearances supported interim relief.

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Issues: Whether the applicants were entitled to waiver of pre-deposit of duty and penalty in the facts of the case.

Analysis: The benefit of Notification No. 13/2000-C.E. dated 1-3-2000 had been denied on the ground that the plant was not an integrated steel plant and duty was demanded on depot-clearance price. The applicants maintained that, even if the notification benefit was unavailable, clearances were also made from the factory gate to independent customers and factory gate price was therefore available for assessment. The existence of factory gate clearances and payment of duty on depot clearances indicated a strong prima facie case for grant of interim relief.

Conclusion: Waiver of pre-deposit of duty and penalty was granted in favour of the applicants.

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