Pre-deposit waiver in exemption dispute denied where prima facie breach of notification conditions was not rebutted.

Challenge to denial of exemption under Notification No. 23/2003-CE concerned alleged use of duty-free imported inputs in goods cleared into the Domestic Tariff Area contrary to the notification conditions. At the prima facie stage, the condition under Sl. No. 3A was not satisfactorily disputed, while limitation and quantification were treated as issues for detailed hearing. On the material then available, complete waiver of pre-deposit was not justified. Partial pre-deposit was directed as a condition for stay of recovery during pendency of the appeal.

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Issues: Whether waiver of pre-deposit of the entire duty and interest demand was justified in the challenge to denial of exemption under Notification No. 23/2003-CE.

Analysis: The dispute arose from the alleged use of duty-free imported inputs in goods cleared into the Domestic Tariff Area, contrary to the conditions of the exemption notification. The record disclosed that the condition under Sl. No. 3A of the notification had not been satisfactorily contested at the prima facie stage, and the Tribunal considered the challenge on limitation and quantification to be matters for detailed hearing. On the material then available, a case for complete waiver was not made out.

Conclusion: Complete waiver of pre-deposit was denied, and a partial pre-deposit was directed as a condition for stay of recovery during the pendency of the appeal.

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