Prima facie relief on exempted goods dispute: waiver of pre-deposit and stay granted in bagasse classification matter.

Bagasse cleared during sugar manufacture was treated as a non-excisable product, and the Revenue sought recovery of 5% of the value of the exempted goods on the basis that common input services were used without separate accounts. The Tribunal found the controversy prima facie covered by coordinate bench decisions and held that the appellant had shown a prima facie case for interim relief. On that basis, waiver of pre-deposit was 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 of the amount confirmed towards 5% of the value of exempted goods cleared without duty and for stay of recovery pending disposal of the appeal.

Analysis: The dispute related to Bagasse cleared during manufacture of sugar as a non-excisable product. The Revenue proceeded on the basis that common input services were used without separate accounts and, therefore, 5% of the value of the exempted product was recoverable. The Tribunal found that the issue was prima facie covered by existing coordinate bench decisions and, on that basis, the appellant had established a prima facie case for interim relief.

Outcome: Waiver of pre-deposit was granted and recovery was stayed till disposal of the appeal.

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