Prima facie interpretation of exemption entry led to unconditional waiver of pre-deposit pending appeal.

A prima facie construction of the exemption entry under Notification No. 6/2002-C.E. supported the appellant's claim that scouring machines were covered, rather than limiting relief to machines performing both milling and scouring functions. On that basis, the Tribunal dispensed with the requirement of pre-deposit of duty and penalty pending appeal. The stay petition was allowed unconditionally, granting full interim relief during the pendency of the proceedings.

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Issues: Whether pre-deposit of duty and penalty was required to be dispensed with pending appeal.

Analysis: The demand had been confirmed by denying exemption under Notification No. 6/2002-C.E. for milling and scouring machines. The appellant contended that the expression used in the notification covered scouring machines as well, while the Revenue maintained that the benefit was confined to machines performing both functions. On a prima facie assessment, the Tribunal found merit in the appellant's construction of the exemption entry.

Conclusion: Pre-deposit was waived and the stay petition was allowed unconditionally.

Final Conclusion: Interim relief was granted in full, removing the condition of pre-deposit during the pendency of the appeal.

Ratio Decidendi: Where the exemption entry is capable of a prima facie construction supporting the appellant's claim, pre-deposit may be dispensed with unconditionally.

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