Fly ash percentage for exemption must be based on finished goods at clearance, excluding water content.

Conditional exemption for asbestos cement sheets depended on the fly ash percentage being assessed on the finished goods at the time of clearance from the factory, not on wet weight during curing. The record indicated that the departmental computation had included water content, while production figures and returns appeared to reflect the actual cleared weight. Earlier Tribunal decisions also supported excluding water content from the fly ash calculation. On that basis, the appellants established a strong prima facie case for waiver of pre-deposit pending the appeal.

---

---

Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit in an appeal concerning denial of conditional exemption based on the percentage of fly ash in asbestos cement sheets.

Analysis: The question turned on how the percentage of fly ash was to be assessed for the exemption notifications. The materials indicated that the impugned goods were weighed while still wet and undergoing curing, whereas the relevant assessment had to reflect the condition of the finished goods at the time of clearance from the factory. On the available record, the statutory production figures and returns appeared to represent the actual cleared weight, and the inclusion of water content in the departmental computation was not supported at this stage. The earlier Tribunal decisions relied upon also supported the view that water content should not be taken into account for determining the fly ash percentage for the exemption.

Conclusion: The appellants established a strong prima facie case and the requirement of pre-deposit was waived during the pendency of the appeal.

---