Prima facie non-manufacture finding justified waiver of pre-deposit and stay of recovery in petroleum processing dispute.

Interim relief was granted on the view that processing petroleum products with sulphuric acid, sodium carbonate solution, water and fractional distillation raised a strong prima facie case that the activity did not amount to manufacture. The Tribunal relied on its earlier stay order and the decision cited in support of it, and it did not accept the Revenue's attempted distinction for the limited purpose of refusing interim protection. Pre-deposit of duty was therefore waived and recovery was stayed pending the appeal.

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Issues: Whether waiver of pre-deposit of duty and stay of recovery should be granted on the ground that the process of treating petroleum products by sulphuric acid, sodium carbonate solution and water fractional distillation did not amount to manufacture.

Analysis: A strong prima facie case was found for waiver. The process undertaken was considered, at the interim stage, not to amount to manufacture in view of the Tribunal's earlier stay order and the earlier decision relied upon therein. The distinction sought to be drawn by the Revenue was not accepted for the purpose of refusing interim relief.

Outcome: Pre-deposit of duty was waived and recovery was stayed pending the appeal.

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