Pre-deposit waiver and recovery stay were granted while the exemption interpretation issue was referred to a Larger Bench.

The Tribunal dealt with a request for waiver of pre-deposit and stay of recovery pending appeal in a dispute over interpretation of an exemption entry. It noted that the issue was not concluded by the earlier decision relied upon and that the exemption question required reconsideration by a Larger Bench. Referring to a comparable appeal in which waiver had been granted, it allowed full waiver of pre-deposit of duty and penalty and stayed recovery until disposal of the appeal, while leaving the substantive exemption issue for determination by the Larger Bench.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery pending disposal of the appeal.

Analysis: The Tribunal noted that the issue arising for consideration was not concluded by the earlier decision relied upon by the appellant and that the interpretation of the exemption entry required reconsideration by a Larger Bench. At the same time, it noticed that the earlier decision in a similar matter had been treated as favourable to the appellant and that waiver had been granted in a comparable appeal.

Conclusion: Full waiver of pre-deposit in respect of duty and penalty was granted and recovery thereof was stayed till disposal of the appeal, in favour of the appellant.

Final Conclusion: Interim relief was allowed, while the substantive exemption issue was left for decision by a Larger Bench.

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