Exemption for fly-ash based goods required only prescribed records and returns, supporting complete pre-deposit waiver.

Exemption for goods under Chapter 68 using not less than 25% by weight of fly-ash or phospho-gypsum was considered on a prima facie basis for pre-deposit relief. The record indicated that both the finished boards and the slurry used in manufacture at the unit contained the stipulated material, and the notification required only maintenance of prescribed accounts and filing of monthly returns. As no non-compliance with those procedural conditions was found, the additional requirement suggested by the Revenue that the final goods must contain a particular quantity of fly-ash or phospho-gypsum at the unit was not accepted. The appellant was therefore treated as eligible for complete waiver of pre-deposit of demand, interest and penalty.

---

---

Issues: Whether the appellant was entitled to waiver of pre-deposit in respect of the demand, interest and penalty arising from alleged wrongful availment of exemption under the notifications governing goods containing not less than 25% by weight of fly-ash or phospho-gypsum.

Analysis: The exemption covered goods falling under Chapter 68 in which not less than 25% by weight of fly-ash or phospho-gypsum or both had been used. The record showed that both the finished boards and the slurry used in manufacture at the relevant unit were made using the stipulated material. The only condition invoked by the notification was maintenance of prescribed accounts and filing of monthly returns, and there was no finding that those procedural requirements had not been complied with. The notification did not impose the additional condition suggested in the impugned order that a particular quantity of fly-ash or phospho-gypsum must be used in the final goods at the unit as construed by the Revenue.

Conclusion: The appellant satisfied the prima facie conditions for exemption and was entitled to complete waiver of pre-deposit of the demand, interest and penalty.

---