Excise duty on insurance compensation stayed pending appeal after prima facie finding that the claim was separate from goods clearance.

Recovery of excise duty and penalty was stayed pending appeal where the dispute concerned levy on compensation received from an insurance company. The order records a prima facie view that no duty was justified on the insurance compensation and that the insurance claim was separate from the clearance of goods. On that basis, the appellant was treated as having a strong case for interim relief, and recovery was stayed until disposal of the appeal.

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Issues: Whether recovery of the demanded excise duty and penalty should be stayed pending disposal of the appeal, in view of the challenge to levy duty on the compensation received from the insurance company.

Analysis: The order records a prima facie view that there was no justification for demanding duty on the insurance compensation and that the insurance claim was a separate matter from clearance of goods. On that basis, the appellant was found to have a strong case for interim relief.

Outcome: Recovery of the duty and penalty was stayed till disposal of the appeal.

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