Manufacture dispute over sodium silicate conversion led to waiver of pre-deposit and stay of duty recovery.

Conversion of solid sodium silicate into liquid sodium silicate was treated as not amounting to manufacture, following an earlier ruling on the same process. The Bench also noted that the extended period of limitation had been disallowed earlier on the basis of bona fide belief. On that footing, the assessee established a prima facie case against the duty demand, and pre-deposit of duty and penalty was waived while recovery was stayed.

---

---

Issues: Whether conversion of solid sodium silicate into liquid sodium silicate amounted to manufacture, and whether the assessee had made out a prima facie case for waiver of pre-deposit and stay of recovery of duty and penalty.

Analysis: The Bench noted that in an earlier decision on the same process, conversion of solid sodium silicate into liquid sodium silicate was held not to amount to manufacture, and the extended period of limitation had also been disallowed on the basis of bona fide belief. On that footing, the present appellant was found to have a prima facie case against the duty demand.

Outcome: Pre-deposit of duty and penalty was waived and recovery was stayed.

---