Exemption notification coverage and prima facie entitlement supported waiver of pre-deposit and stay of recovery at admission stage.

At the interim stage, waiver of pre-deposit and stay of recovery were granted where the factory premises were found, on a prima facie basis, to fall within the khasra numbers covered by the exemption notification. The only part lying in the omitted khasra number was a drainage strip on the boundary, so exclusion from the exemption was not justified at the admission stage. As the appellants showed a prima facie entitlement to the notification benefit, the demand and penalty were not required to be deposited pending disposal of the appeals.

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Issues: Whether the appellants were entitled, at the interim stage, to waiver of pre-deposit and stay of recovery in view of the exemption notification applicable to goods manufactured in the specified khasra numbers.

Analysis: The factory premises were found to lie within the specified khasra numbers covered by the exemption notification, and the only portion falling in the omitted khasra number was a drainage strip on the boundary. On this prima facie view, the exclusion of the exemption was not justified at the stage of admission. The demand and penalty were therefore not required to be pre-deposited pending disposal of the appeals.

Conclusion: Waiver of pre-deposit and stay of recovery were granted in favour of the appellants.

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