Prima facie entitlement to reduced duty under the notification justified waiver of pre-deposit and stay of penalty recovery.

Entitlement to the reduced-duty entry in Serial No. 93 of Notification No. 4/2006-C.E. was treated as prima facie available for paper and paper boards manufactured by the appellant, because the notification text supported discharge of duty at 8% on the appellant's claimed basis. Revenue's objection that the appellant should instead have used the exemption for the first clearance of 3,500 MT was not accepted at the interim stage. On that footing, the appellant made out a prima facie case for waiver of pre-deposit, and recovery of the penalty amount was stayed pending disposal of the appeal.

---

---

Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit of the penalty amount in view of its entitlement to the benefit of Serial No. 93 of Notification No. 4/2006-C.E. dated 01-03-2006.

Analysis: The appellant had availed the entry granting duty liability at 8% for paper and paper boards manufactured by it. Revenue contended that the appellant ought to have taken the benefit of the entry relating to exemption for the first clearance of 3500 MT. On a perusal of the notification, the appellant's claim to discharge duty at the reduced rate under Serial No. 93 was found to be prima facie available, and denial of that benefit was not justified at the interim stage.

Conclusion: The appellant established a prima facie case for waiver of pre-deposit, and recovery of the penalty amount was stayed until disposal of the appeal.

---