Exemption claim through job worker upheld at stay stage, with agent's declaration treated as binding on the principal.

Pre-deposit of duty and penalty was waived where the exemption benefit was claimed through a job worker treated as the appellant's authorised agent rather than an independent manufacturer. The declaration filed by the job worker was regarded as binding on the principal, and the existence of factory premises, machinery and workforce with the job worker supported the assessee's prima facie case at the stay stage. The stay petitions were accordingly allowed.

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Issues: Whether pre-deposit of duty and penalty should be waived where the benefit of exemption notification was claimed through a job worker and the declaration filed by the job worker was asserted to be sufficient.

Analysis: The order proceeded on the footing that the job worker was treated as the agent of the appellant and not as an independent manufacturer. On that basis, the filing of declaration by the authorised agent was regarded as binding on the principal. The order also recorded that the job worker had factory premises, machinery and workforce for undertaking the job work, which supported the appellant's prima facie claim at the stage of stay.

Conclusion: Pre-deposit of duty and penalty was waived and the stay petitions were allowed in favour of the assessee.

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