Prima facie entitlement to exemption sustained where cooperative society members owned the factory land and ran the unit.

In a pre-deposit and stay application before CESTAT, the applicant claimed Notification No. 30/81-C.E. benefit despite the factory land being owned by members of the cooperative society rather than the applicant. The revenue did not dispute that the land belonged to the society's members and that the same society was running the factory. On that factual basis, the applicant was held to have made out a strong prima facie case for interim relief, and the pre-deposit of duty was waived with stay granted.

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Issues: Whether, for the purpose of waiver of pre-deposit and stay, the applicant had made out a prima facie case for claiming the benefit of Notification No. 30/81-C.E. dated 1-3-81.

Analysis: The disputed basis for denial of the notification benefit was that the land on which the factory stood belonged to the members of the cooperative society and not to the applicant. It was found that the revenue did not dispute that the land belonged to the members of the cooperative society and that the same society was running the factory. On that basis, the applicant was held to have a strong prima facie case for interim relief.

Conclusion: The pre-deposit of duty was waived and the stay petitions were allowed.

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