Prima facie manufacture dispute under the Central Excise Tariff led to full waiver of pre-deposit and stay of recovery.

The appeal concerned whether mixing Gibberillic acid and 6 Benzyl aminopurine amounted to manufacture of a plant growth regulator under Chapter Note 8 to Chapter 38 of the Central Excise Tariff. The appellants argued that the duty position was prima facie sustainable, including because similar goods had been accepted as duty-paid at other locations. On that basis, the tribunal found a prima facie case for interim protection and granted waiver of the entire pre-deposit with stay of recovery pending the appeals.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit and stay of recovery during the pendency of the appeals.

Analysis: The dispute turned on whether the process of mixing Gibberillic acid and 6 Benzyl aminopurine resulted in manufacture of a plant growth regulator, as indicated by Chapter Note 8 to Chapter 38 of the Central Excise Tariff. The appellants also pointed to the Revenue's acceptance of duty-paid clearances of similar goods manufactured in other locations, which supported their claim that the duty position adopted by them was sustainable at least prima facie.

Conclusion: The appellants were held entitled to waiver of pre-deposit of the entire dues and stay of recovery pending the appeals.

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