Prima facie entitlement to exemption entry supported full waiver of pre-deposit in edible oil repacking dispute.

Relying on Chapter Note 4 to Chapter 15 of the Central Excise Tariff Act and Notification No. 6/2002-C.E., the assessee argued that repacking duty-paid refined edible oils into retail packs could be assessed under the entry chosen by it, where one entry prescribed duty at a specified per kg rate and another provided a nil rate. In the stay proceedings, this was treated as a strong prima facie basis for interim relief because no provision in the notification or elsewhere was shown to prevent such reliance. Full waiver of pre-deposit of duty and penalty was granted pending disposal of the appeal.

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Issues: Whether, in the facts of the case, full waiver of pre-deposit of duty and penalty was warranted at the stay stage.

Analysis: The appeal concerned a demand arising from repacking of duty-paid refined edible oils into retail packs, with reliance placed on Chapter Note 4 to Chapter 15 of the Central Excise Tariff Act and Notification No. 6/2002-C.E. The appellant had shown that the notification contained an entry attracting duty at Rs. 1/- per kg. and another entry prescribing nil rate, and that there was no indication in the notification or any other provision preventing reliance on the entry chosen by the assessee. On that basis, the appellant was found to have made out a strong prima facie case for interim relief.

Conclusion: Full waiver of pre-deposit of duty and penalty was granted pending disposal of the appeal.

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