Separate accounts and simultaneous exemption benefits supported waiver of pre-deposit and stay of recovery.

Maintaining separate accounts for inputs used in goods cleared under two exemption notifications supported simultaneous availment of both benefits. The Board's circular dated 28-7-2004 was treated as clarifying that such separate accounting permits concurrent use of the notifications, and this created a strong prima facie case for the applicant. On that basis, pre-deposit of duty, interest and penalty was waived and recovery was stayed pending appeal.

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Issues: Whether the applicant was entitled to waiver of pre-deposit and stay of recovery on the basis that it maintained separate accounts and availed the benefit of two exemption notifications simultaneously.

Analysis: The applicant had maintained separate accounts for inputs used in the manufacture of goods cleared under the two notifications. The Board's Circular dated 28-7-2004 clarified that where such separate accounts are maintained, the manufacturer can avail the benefit of both notifications simultaneously. The record therefore disclosed a strong prima facie case in favour of the applicant.

Conclusion: The pre-deposit of duty, interest and penalty was waived and recovery was stayed during the pendency of the appeal.

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