Prima facie case for notification benefit led to waiver of pre-deposit and stay of recovery pending appeal.

Denial of Notification No. 89/95 for waste products generated during manufacture of rice bran oil was challenged in a stay application. The Tribunal noted that an identical issue had already been decided by the same Bench in favour of the assessee, holding that such waste products were eligible for the notification. Relying on that prior view and the material on record, it found a prima facie case for interim protection. The waiver of pre-deposit of duty and penalty was allowed, and recovery of the disputed amounts was stayed pending disposal of the appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit of duty and penalty and stay of recovery pending appeal.

Analysis: The demand arose from denial of the benefit of Notification No. 89/95 dated 18.05.1995 in respect of waste products generated during manufacture of rice bran oil. The Tribunal noted that an identical issue had already been decided by the same Bench in favour of the assessee, holding that such waste products were eligible for the benefit of the notification. In view of that earlier view and the material on record, the appellant was found to have established a prima facie case for interim relief.

Conclusion: The application for waiver of pre-deposit was allowed and recovery of the disputed amounts was stayed till disposal of the appeal, in favour of the assessee.

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