Returned goods reused in manufacture can support waiver of pre-deposit and stay of recovery on a prima facie basis.

Returned equipment dismantled and the salvaged parts reused in manufacturing similar goods was treated as prima facie within the scope of manufacture at the interim stage, because the notice facts did not show mere repair. On that basis, the Tribunal found a prima facie case for waiver of pre-deposit and stay of recovery pending the appeal. The earlier decision relied on by the appellant was treated as prima facie applicable, and interim relief was granted by staying recovery of the adjudged dues until disposal of the appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit and stay of recovery in a dispute concerning returned goods dismantled and re-used in the manufacture of similar goods.

Analysis: The returned equipment was not shown to have been merely repaired. The facts stated in the notice indicated that the goods were dismantled, the salvaged parts were reused in manufacturing equipment of the same kind, and only negligible unusable parts were cleared as scrap. On those facts, the activity was not shown to be outside the scope of manufacture at the interim stage, and the Tribunal treated the earlier decision relied upon by the appellant as prima facie applicable.

Conclusion: The appellant made out a prima facie case and was entitled to waiver of pre-deposit and stay of recovery during pendency of the appeal.

Final Conclusion: Interim relief was granted in favour of the appellant, and recovery of the adjudged dues was stayed pending disposal of the appeal.

Ratio Decidendi: Where the available facts show dismantling of returned goods and reuse of salvaged parts in manufacturing similar goods, a prima facie case for waiver of pre-deposit and stay of recovery may be made out.

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