Exemption for textile tents under Notification No. 30/2004-C.E. supported waiver of pre-deposit and stay of recovery.

Exemption under Notification No. 30/2004-C.E. for textile articles in Chapters 61, 62 and 63 was held, at the prima facie stage, not to be confined only to the textile component of tents with aluminium support structure. The Tribunal noted the admitted position that no Cenvat credit had been availed on inputs, and on that basis found a prima facie case for waiver of pre-deposit. Recovery under the impugned order 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 and stay of recovery by claiming exemption under Notification No. 30/2004-C.E. for tents classifiable under Chapter 63 of the Central Excise Tariff Act, 1985.

Analysis: The notification exempts textile articles falling under Chapters 61, 62 and 63, subject to the condition that Cenvat credit has not been taken on the inputs. The dispute was whether the presence of aluminium support structure in the tents excluded the appellant from the benefit of the notification. The Tribunal held, at the prima facie stage, that the notification did not restrict exemption to the textile component only, and the appellant's claim was supported by the admitted fact that no Cenvat credit had been availed.

Conclusion: A prima facie case was made out in favour of the appellant, the condition of pre-deposit was waived, and recovery pursuant to the impugned order was stayed till disposal of the appeal.

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