Pre-deposit waiver and stay of recovery granted on a prima facie exemption dispute involving dies used for forgings.

A strong prima facie case justified waiver of pre-deposit and stay of recovery pending appeal where the demand arose from denial of exemption under Notification No. 67/95-C.E. on the basis that dies used for forging manufacture were exempted goods. The Tribunal noted support from an earlier decision favouring the appellant and observed that coordinate Benches had taken different views on the related credit and exemption issue. On that footing, the balance of convenience favoured interim relief, and pre-deposit was waived with recovery stayed until disposal of the appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery pending appeal.

Analysis: The demand was based on denial of exemption under Notification No. 67/95-C.E. on the premise that the dies used for manufacture of forgings were exempted goods. The Tribunal found that the appellant had a strong prima facie case in view of an earlier decision supporting its stand, and noted that different views had been taken by coordinate Tribunal Benches on the credit/exemption issue. In these circumstances, the balance favoured grant of interim relief.

Conclusion: Waiver of pre-deposit was granted and recovery was stayed pending disposal of the appeal.

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