Waiver of pre-deposit for handloom exemption claim granted on a strong prima facie case and supporting certificates.

Interim relief was justified where the applicants claimed exemption under Notification No. 6/2000-C.E. for yarn cleared to registered handloom-related cooperative entities and supported the claim with handloom-use certificates. The Tribunal treated the acceptance of similar certificates in an earlier decision involving the same issue as supporting a strong prima facie case, and on that basis waived pre-deposit of the duty and penalty and granted stay of recovery.

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Issues: Whether the applicants were entitled to waiver of pre-deposit and stay of recovery in respect of the duty and penalty demand.

Analysis: The applicants claimed the benefit of Notification No. 6/2000-C.E. on the footing that the yarn was cleared to registered handloom-related cooperative entities and that certificates regarding use on handloom had been produced. The Tribunal noted that similar certificates had been accepted in an earlier decision involving the same type of issue. On that basis, it found that the applicants had made out a strong prima facie case for interim relief.

Conclusion: The pre-deposit of the entire duty and penalty was waived and the stay petition was allowed in favour of the applicants.

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