Permission to send dies to a job worker supported interim waiver where no raw-material condition was imposed.

Permission to send moulds and dies to a job worker under Rule 57S(8) allowed interim relief where the competent authority had not imposed any condition requiring supply of raw material. On the facts presented, the Tribunal found a prima facie case that the demand for duty and penalties could not be sustained merely on that basis at the stay stage. A cited Supreme Court ruling was treated as inapplicable because it arose under a different notification regime. Waiver of duty and penalty and stay of recovery were granted pending final disposal of the appeal.

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Issues: Whether the appellants were entitled to waiver of the duty and penalties confirmed against them and stay of recovery pending disposal of the appeal, in light of Rule 57S(8) of the Central Excise Rules.

Analysis: The disputed die had been sent to a job worker with permission obtained from the competent authority. Rule 57S(8) permitted removal of moulds and dies to a job worker for production of goods on behalf of the manufacturer, subject to permission and such terms, conditions and limitations as imposed by the Commissioner. On the facts placed before the Tribunal, the requirement that raw material must also be supplied to the job worker was not shown to have been imposed as a condition of the permission granted. The reliance placed on the cited Supreme Court decision was found, at the prima facie stage, to be inapplicable because it arose under a different notification regime.

Conclusion: The appellants established a prima facie case for interim relief. Waiver of the duty and penalty demand and stay of recovery were granted pending final disposal of the appeal.

Ratio Decidendi: Where permission under the relevant rule to send moulds and dies to a job worker is granted without imposing a condition to supply raw material, denial of the benefit cannot be justified at the interim stage merely on that basis.

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