Prima facie exclusion of inter-unit clearances supported waiver of pre-deposit and stay in an SSI exemption dispute.

A prima facie challenge to inclusion of inter-unit clearances in the aggregate turnover for small scale industry exemption can justify interim relief where the exemption notifications and cited precedent support separate treatment of the disputed clearances. In the stated dispute, the Tribunal examined whether clearances to a sister export oriented unit and related export clearances should be counted for exemption computation, and found that the appellant had shown a prima facie case against such inclusion. On that basis, waiver of pre-deposit and stay of recovery were granted, while the merits of the duty demand were left open for final adjudication.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit and stay of recovery in a dispute concerning computation of aggregate value of clearances for small scale industry exemption, including the effect of clearances to a sister export oriented unit under the relevant exemption notifications.

Analysis: The Tribunal examined the two exemption notifications governing the dispute and the cited precedent concerning separate treatment of units owned or controlled by the State Government. It found that the appellant's contention against inclusion of the inter-unit clearances and the EOU's export clearances raised a prima facie case fit for interim relief.

Conclusion: The appellant was entitled to waiver of pre-deposit and stay of recovery.

Final Conclusion: Interim relief was granted on the basis of a prima facie challenge to the demand, leaving the merits of the duty dispute undetermined at this stage.

Ratio Decidendi: Where the materials and the relevant exemption notifications disclose a prima facie case against inclusion of disputed clearances in the aggregate turnover computation, pre-deposit and recovery may be stayed pending adjudication.

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