Pre-deposit waiver for coil slitting scrap upheld where the activity was prima facie not manufacture.

Cutting and slitting of HR/CR coils had already been treated as not amounting to manufacture, and the scrap generated from that process was therefore treated as prima facie not excisable. On that basis, the benefit of Notification No. 89/95-C.E. was found to support the applicant's request for interim relief, and pre-deposit was waived with recovery stayed pending disposal of the appeal.

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Issues: Whether the applicant had made out a prima facie case for waiver of pre-deposit and stay of recovery in respect of duty demand arising from cutting and slitting of HR/CR coils and the scrap generated therefrom.

Analysis: The activity of cutting and slitting of coils had already been treated as not amounting to manufacture. On that basis, the waste and scrap arising from such activity was considered not likely to be excisable. The benefit claimed under Notification No. 89/95-C.E. was therefore found to support the applicant's case at the interim stage.

Conclusion: The applicant was held to have established a prima facie case for waiver of pre-deposit, and recovery of the dues was stayed till disposal of the appeal.

Final Conclusion: Interim relief was granted in favour of the applicant, while the appeal on merits remained pending.

Ratio Decidendi: Where the underlying activity is found not to amount to manufacture and the resulting waste or scrap is prima facie not excisable, pre-deposit may be waived and recovery stayed at the interim stage.

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