Predeposit waiver for excise exemption denied where cement was not shown prima facie to fall within the notification

Cement cleared for use in setting up water supply plants was not shown, on a prima facie basis, to fall within Notification No. 3/04, which was construed as covering machinery and allied items required for such plants. A certificate from the specified authority, by itself, was held insufficient to establish eligibility for exemption at the predeposit stage. The appellant was therefore directed to deposit the full duty amount, while waiver and stay were granted for interest and penalty upon such deposit.

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Issues: Whether the appellant was entitled to waiver of predeposit of excise duty, interest and penalty on the claim that cement cleared for setting up water supply plants was covered by Notification No. 3/04.

Analysis: The notification was read as granting exemption to machinery and allied items required for setting up water supply plants, and the certificate issued by the specified authority was found insufficient, by itself, to establish a prima facie case that cement was covered by the exemption. In the absence of a prima facie case, waiver of the duty deposit was declined.

Outcome: The appellant was directed to deposit the entire duty amount, while waiver and stay were granted for interest and penalty upon such deposit.

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