Prima facie credit entitlement on inter-premises transfers can justify waiver of pre-deposit and stay of recovery

Duty-paid molasses transferred between adjacent registered premises of the same company may support a prima facie claim to credit where their duty-paid character and use by the same company's chemical division are undisputed. In that situation, a defect or objection in the removal documents does not, by itself, justify insisting on pre-deposit at the stay stage. The operative effect is that waiver of pre-deposit and stay of recovery may be granted pending disposal of the appeal when the credit claim appears prima facie admissible on these facts.

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Issues: Whether, on the facts shown, the appellant was entitled to waiver of pre-deposit and stay of recovery on a prima facie view that credit was admissible on duty-paid molasses transferred between adjacent registered premises of the same company.

Analysis: The premises were stated to be adjacent and separately registered under the same company. The duty-paid character of the molasses was not disputed, nor was their use by the chemical division of the same company. In these circumstances, the Tribunal held that a prima facie case existed in favour of credit entitlement, and the objection based on the form of the removal documents did not justify insisting on pre-deposit at that stage.

Conclusion: The appellant was held entitled to waiver of pre-deposit and stay of recovery pending disposal of the appeal.

Ratio Decidendi: Where duty-paid goods are transferred between adjacent registered premises of the same assessee and their duty-paid nature and end-use are undisputed, a prima facie entitlement to credit can justify waiver of pre-deposit and stay of recovery.

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