Prima facie waiver of pre-deposit granted for warship supply exemption dispute and recovery stayed pending appeal.

A prima facie case for waiver of pre-deposit was found where goods were supplied to Mazagon Dock Limited for use in constructing warships for the Indian Navy. The Revenue did not dispute the exemption notification conditions, and the dispute was treated as covered by a coordinate Bench decision on the same issue. On that basis, the appellant was entitled to waiver of pre-deposit against the demanded duty and penalty, and recovery was stayed until disposal of the appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit in respect of the duty and penalty demanded under the exemption notification.

Analysis: The goods were supplied to Mazagon Dock Limited for use in the construction of warships for the Indian Navy. The notification conditions were not disputed by the Revenue, and the dispute was treated as covered by the coordinate Bench decision on an identical issue. On that basis, the appellant was held to have established a prima facie case warranting waiver of pre-deposit.

Conclusion: The waiver of pre-deposit was granted and recovery was stayed till disposal of the appeal.

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