Tribunal Waives Pre-Deposit for Duty, Interest, and Penalty in Exemption Case

The Tribunal granted the applicant's request for waiver of pre-deposit of duty, interest, and penalty amounting to Rs. 1,07,46,905 under exemption notifications. Despite the Revenue's argument that the applicant did not use indelible ink for marking prices, the Tribunal found substantial compliance with the notification's condition. Noting the absence of evidence of selling goods at higher prices, the Tribunal relied on previous decisions to support its ruling. Consequently, the Tribunal waived the pre-deposit requirement, stayed the recovery, and allowed the stay petition, emphasizing the applicant's strong prima facie case and substantial compliance with the notification.

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Issues: Application for waiver of pre-deposit of duty under exemption notifications.

Analysis:
1. The applicant sought waiver of pre-deposit of duty, interest, and penalty amounting to Rs. 1,07,46,905 under exemption notifications No. 23/2004 and 5/2006. These notifications provide concessional duty rates based on certain conditions, including marking rejected sale prices on footwear indelibly.
2. The applicant argued that they comply with the notification by using stickers with revised prices on rejected footwear, which cannot be removed without damaging the substrate. They presented a test certificate supporting their claim. They emphasized that there were no allegations of selling goods at higher prices than those marked on the stickers.
3. The Revenue contended that the applicant did not use indelible ink for marking revised prices, thus failing to meet the notification's condition.
4. The Tribunal noted that stickers were affixed after manufacturing completion, but there was no evidence of charging higher prices than those on the stickers. The Commissioner did not dispute the test certificate's authenticity. Consequently, the Tribunal found substantial compliance with the notification's condition, citing previous Tribunal and Supreme Court decisions in support.
5. As the applicant demonstrated a strong prima facie case in their favor and showed substantial compliance with the notification, the Tribunal waived the pre-deposit requirement and stayed the recovery during the appeal's pendency. The stay petition was allowed, and the decision was pronounced in open court.

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