Pre-deposit waiver for duty and penalty granted after prima facie case showed tax treatment neutralised depreciation benefit.

Pre-deposit of duty and equivalent penalty was waived where the applicants showed that the excise duty element on capital goods had already been treated as income and subjected to tax, thereby neutralising the depreciation benefit. As that factual contention was not controverted, the Tribunal found a prima facie case for interim relief in the waiver application and stayed recovery pending disposal of the appeal.

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Issues: Whether pre-deposit of duty and penalty should be waived and recovery stayed pending appeal.

Analysis: The applicants contended that the excise duty element on capital goods had been shown as income and subjected to tax, so the depreciation benefit stood effectively neutralised. That contention was not controverted, and the Tribunal found that a prima facie case was made out for grant of interim relief in the waiver application.

Conclusion: Pre-deposit of the duty and equivalent penalty was waived and recovery was stayed pending disposal of the appeal.

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