Concurrent exemption notifications with separate records justified prima facie waiver and stay of recovery

Concurrent benefit of Notifications No. 29/2004 and 30/2004 was treated as available on a prima facie basis where separate records were maintained, because the Board's clarification stated there was no restriction on simultaneous availment in that situation. On that footing, the applicant was found entitled to interim protection, and waiver of duty demand and penalty, with stay of recovery granted pending final determination.

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Issues: Whether the applicant was entitled to waiver of duty demand and stay of recovery on a prima facie view that exemption under Notification No. 30/2004 could be availed after reversal of input credit, and that the benefits of Notifications No. 29/2004 and No. 30/2004 dated 9-7-2004 could be taken simultaneously when separate records were maintained.

Analysis: The Board circular clarified that there was no restriction on availing the benefit of both notifications simultaneously, provided separate accounts were maintained. On that prima facie basis, the applicant's case was treated as covered in its favour for the purpose of interim relief.

Conclusion: The applicant was granted waiver of the duty demand and penalty and was also protected by stay of recovery.

Final Conclusion: Interim relief was allowed in favour of the assessee on the basis of the Board's clarification and the maintenance of separate records.

Ratio Decidendi: Where the Board's clarification permits concurrent benefit of two exemption notifications subject to maintenance of separate accounts, a prima facie case exists for waiver and stay.

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