Prima facie case for waiver of pre-deposit failed where exemption certificates were produced after factory clearance.

Exemption under Notification No. 5/98 was treated as debatable because the prescribed certificate had to be produced at the time of factory clearance, but the appellants relied on certificates issued only after clearance. In considering waiver of pre-deposit, the tribunal focused on whether a prima facie case existed, not on final merits. On the material before it, the appellants failed to establish such a prima facie case, so the waiver request was rejected and deposit was directed before the appeal could proceed on merits.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit of duty in view of the claimed exemption under Notification No. 5/98.

Analysis: The condition for availing the exemption under Sl. No. 96 of Notification No. 5/98 required production of the prescribed certificate at the time of clearance from the factory. The certificates relied upon by the appellants were produced after clearance, making the exemption claim debatable. Since the Commissioner (Appeals) had dismissed the appeals for non-compliance and not on merits, the only question was whether a case for waiver of pre-deposit had been made out. On the material before it, the appellants failed to establish such a prima facie case.

Conclusion: The request for waiver of pre-deposit was rejected, and the appellants were directed to deposit Rs. 15,000 within the stipulated time, after which the Commissioner (Appeals) was to decide the matter on merits.

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