Prima facie waiver of pre-deposit granted where power was used only for packing biri, not manufacture itself.

In a prima facie assessment for stay, the Tribunal held that packing biri in pre-printed plastic sheets with the aid of power did not, by itself, establish manufacture with the aid of power. The applicants' contention was therefore sufficient at the interim stage to justify complete waiver of pre-deposit. The Tribunal also noted that the effect of the amendment to Chapter Note 3 to Chapter 24 and Notification No. 11/2008-CE would be examined at final hearing. On that limited basis, recovery of duty was stayed during the pendency of the appeal.

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Issues: Whether the applicants had made out a prima facie case for total waiver of pre-deposit of duty, and whether the packing of biri in pre-printed plastic sheets with the aid of power, as distinguished from manufacture without the aid of power, warranted stay of recovery pending appeal.

Analysis: The applicants contended that the use of power was confined to packing and did not amount to manufacture with the aid of power. The Tribunal noted its earlier view that packing with the aid of power did not by itself convert the process into manufacture of biri with the aid of power. It also observed that the effect of the amendment to Chapter Note 3 to Chapter 24 and Notification No. 11/2008-CE would be considered at the time of final disposal of the appeal. On that limited prima facie assessment, the applicants were found to have established a case for complete waiver of pre-deposit.

Conclusion: Total waiver of pre-deposit was granted and recovery of duty was stayed during the pendency of the appeal.

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