Solar lantern exemption dispute: prima facie case justified waiver of pre-deposit and stay of recovery.

Exemption under Notification No. 6/2002-CE was read as covering solar lanterns, and the goods were found to be solar lanterns capable of being charged by a solar module for two lanterns at a time. Because the notification contained no restriction limiting the benefit to a single lantern, the applicants established a prima facie case for exemption. On that basis, waiver of pre-deposit was granted and recovery of the duty demand was stayed during pendency of the appeal.

---

---

Issues: Whether the applicants were entitled to waiver of pre-deposit and stay of recovery in respect of the duty demand arising from denial of exemption under Notification No. 6/2002-CE dated 02.03.2002.

Analysis: The exemption notification was read as extending to solar lanterns, and the goods in question were found to be solar lanterns capable of being charged by a solar module for two lanterns at a time. The notification was not found to contain any condition limiting the exemption to only one lantern. On that basis, the applicants were held to have made out a prima facie case in their favour.

Conclusion: Waiver of pre-deposit was granted and recovery was stayed during pendency of the appeal.

Final Conclusion: The application succeeded on the basis of a prima facie entitlement to the exemption claimed, resulting in interim protection against recovery.

Ratio Decidendi: Where the exemption notification does not impose a restriction limiting the benefit to a single lantern, the benefit cannot be denied at the stage of pre-deposit if the assessee otherwise shows a strong prima facie case.

---