Prima facie case for waiver of pre-deposit accepted where unfinished silico manganese was processed and duty paid on clearance

Unfinished silico manganese that was subjected to grinding, sizing and packing before clearance of the finished goods on payment of duty was treated as supporting a prima facie case at the pre-deposit stage. Relying on coordinate and High Court decisions in similar circumstances, the record indicated that the assessee had shown sufficient grounds for total waiver of pre-deposit. Recovery of duty and penalty was therefore stayed pending disposal of the appeal.

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Issues: Whether, on the facts that unfinished silico manganese was subjected to grinding, sizing and packing and the finished goods were cleared on payment of duty, the appellant had made out a prima facie case for waiver of pre-deposit of duty and penalty.

Analysis: The input was received in unfinished condition and subjected to grinding, sizing and packing before clearance of the finished goods on payment of duty. The record showed that in similar circumstances, stay had been granted by coordinate and High Courts on the view that such facts supported a prima facie case in favour of the assessee at the stage of pre-deposit.

Conclusion: A prima facie case for total waiver of pre-deposit was made out and recovery of duty and penalty was stayed during pendency of the appeal.

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