Prima facie marketability of carbide sludge and limitation objections did not justify full waiver of pre-deposit in stay proceedings.

Carbide sludge (lime sludge) was treated as prima facie marketable because it was sold at a minimum price, supporting excisability at the stay stage and making the relied-upon Supreme Court ruling on non-marketable sludge inapplicable on the facts presented. The plea of limitation was also found prima facie unavailable because the goods were cleared without duty despite self-classification under a dutiable heading. A pre-deposit of duty was directed within six weeks, with waiver of pre-deposit and stay of recovery of penalty granted on compliance.

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Issues: Whether Carbide Sludge (lime sludge) was prima facie marketable and therefore excisable; and whether the plea of limitation warranted waiver of pre-deposit in the stay proceedings.

Analysis: The product was found to be sold at a minimum price, which indicated prima facie marketability. In view of that circumstance, the reliance placed on the Supreme Court decision dealing with non-marketable sludge was treated as inapplicable at the stay stage. The plea of time-bar was also found prima facie unavailable because the clearance was made without payment of duty despite self-classification under a dutiable heading.

Outcome: A pre-deposit of the duty amount was directed within six weeks, with waiver of pre-deposit and stay of recovery in respect of penalty upon compliance.

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