National Calamity Contingent Duty exemption supported waiver of pre-deposit and stay of recovery on a strong prima facie case.

National Calamity Contingent Duty was treated as governed by the Central Excise Act, 1944 and its exemptions and refunds framework under the Finance Bill, 2001-2002, so the appellants' claim that the duty was not leviable on exempt goods was examined on a prima facie basis. Goods cleared to a United Nations funded project had already been treated as exempt under the relevant notification, and earlier Tribunal and Supreme Court authorities supported the appellants' position. On that basis, the appellants were found to have a strong prima facie case and were granted waiver of pre-deposit and stay of recovery pending appeal.

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Issues: Whether the appellants were entitled to waiver of pre-deposit and stay of recovery in respect of duty and penalty on a prima facie showing that the National Calamity Contingent Duty was not leviable on the exempted goods.

Analysis: The order noted that sub-clause (3) of Clause 129 of the Finance Bill, 2001-2002 provided for application of the Central Excise Act, 1944 and the rules made thereunder, including exemptions and refunds, to the levy and collection of National Calamity Contingent Duty on the specified goods. It also recorded that the appellants were clearing goods to a United Nations funded project and had been treated as exempt under the relevant notification. Relying on the earlier Tribunal and Supreme Court authorities, the order held that the appellants had made out a strong prima facie case on merits.

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

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