Prima facie classification of motor-vehicle blanks under Chapter 72, with extended limitation not justified, supported stay relief.

For purposes of a stay petition, the Tribunal treated motor-vehicle blanks cleared from a Chapter 72 manufacturing stream as industrial intermediate products, not finished parts or components under Chapter 87, because they still required further processing by recipient units. It also noted that any duty paid would be available as Cenvat credit to the recipients, which supported the prima facie case on classification. On limitation, the extended period was found not prima facie invocable on the material then available. As a result, pre-deposit of the adjudged dues was waived and recovery was stayed pending disposal of the appeal.

---

---

Issues: Whether the manufactured blanks were, for purposes of the stay petition, prima facie classifiable under Chapter 72 or Chapter 87 of the Central Excise Tariff Act, 1985, and whether the extended period of limitation was prima facie invocable.

Analysis: The inputs were admittedly under Chapter 72, and the goods cleared from the factory were blanks meant for further manufacture of parts and components of motor vehicles by the recipient units. On the material before it, the Tribunal found that the blanks had not yet reached the stage of finished parts or components falling under Chapter 87 and were industrial intermediate products requiring further processes. It also noted that any duty paid would be available as Cenvat credit to the recipient units, and that the invocation of the extended period was not, prima facie, justified.

Conclusion: The appellant made out a prima facie case in its favour, and pre-deposit of the adjudged dues was waived with recovery stayed pending disposal of the appeal.

---