Pre-deposit waiver for capital goods sent to job workers was granted on a strong prima facie case

Capital goods may be sent directly to job workers where the relevant rule permits such movement, and credit taken on those goods can be supported by the receipt of scrap after processing. On these facts, the applicants established a strong prima facie case for unconditional waiver of pre-deposit. The adjudged dues were therefore stayed pending the appeal.

---

---

Issues: Whether waiver of pre-deposit and stay of recovery pending appeal should be granted where capital goods were sent directly to job workers and only scrap was received back after processing.

Analysis: The relevant rule prima facie permits capital goods to be sent directly to job workers. The applicants had also taken credit on the capital goods when scrap was received back from the job workers after processing. These features disclosed a strong prima facie case for unconditional waiver of pre-deposit.

Outcome: Pre-deposit was waived and recovery of the adjudged dues was stayed pending the appeal.

---