Prima facie exemption claim supported waiver of pre-deposit where goods were supplied for an approved project.

A prima facie case for waiver of pre-deposit was established where the record showed that goods were supplied for use in a project approved by the concerned organisation under Notification No. 108/95-C.E. The Tribunal noted that the exemption dispute turned on whether direct supply to the project, rather than supply to or through the organisation, defeated the notification claim. On the available material, the appellant was found entitled to interim relief from pre-deposit of duty, penalty and interest, and the stay applications were allowed.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit in a dispute concerning denial of exemption under Notification No. 108/95-C.E. dated 28-8-1995.

Analysis: The exemption had been denied on the ground that the goods were supplied directly to the project and not to or through the organization, as contemplated by the notification. The Tribunal noted, prima facie, that there was no dispute that the goods were supplied for use in a project approved by the concerned organization. On that basis, the appellant was held to have established a prima facie case for interim relief from the requirement of pre-deposit of duty, penalty and interest.

Conclusion: The requirement of pre-deposit was waived and the stay applications were allowed in favour of the appellant.

Final Conclusion: Interim relief was granted by suspending the pre-deposit obligation, and the appeals were directed to proceed in due course.

Ratio Decidendi: Where the record discloses, prima facie, that goods were supplied for use in an approved project under an exemption notification, waiver of pre-deposit may be granted.

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