Newsprint exemption and prima facie case supported waiver of pre-deposit and stay of recovery pending appeal.

The exemption for newsprint required the goods to be intended for printing newspapers and supplied against purchase orders from registered newspapers. Newsprint rolls classified under Chapter heading 4801 were shown to have been cleared against purchase orders placed by newspapers, and no alternate classification was adopted or specific rejection of that classification recorded. On those facts, the appellant established a prima facie case for benefit of the notification. Waiver of pre-deposit was therefore granted and recovery was stayed pending 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 relation to the duty demand on newsprint rolls cleared against purchase orders under the exemption notification.

Analysis: The notification applicable to newsprint required the goods to be intended for printing newspapers and supplied against purchase orders placed by registered newspapers. The goods were undisputedly newsprint rolls falling under Chapter heading 4801, and the record showed that they were supplied against purchase orders placed by newspapers. The demand was also not supported by a specific rejection of the classification under Chapter heading 4801 or by adoption of any alternate classification. On these facts, the appellant established a prima facie case.

Conclusion: The waiver of pre-deposit was granted and recovery was stayed till disposal of the appeal.

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