Prima facie no manufacture in steel roll slitting dispute leads to waiver of pre-deposit and stay of recovery

Cutting and slitting jumbo steel rolls into baby rolls or sheets was treated as not amounting to manufacture, and the applicant was found to have a prima facie case for interim relief. A Board circular and an exemption notification on waste and scrap were considered, but the notification was held inapplicable because the scrap did not arise during manufacture of excisable goods. On that limited basis, the applicant was granted waiver of the entire pre-deposit of duty, interest and penalty, with stay of recovery pending appeal.

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Issues: Whether the applicant made out a prima facie case for waiver of pre-deposit and stay of recovery in a dispute concerning scrap arising from cutting and slitting of steel rolls, where the process was contended not to amount to manufacture.

Analysis: The applicant's process of cutting and slitting jumbo rolls into baby rolls or sheets was accepted as not amounting to manufacture. The Board circular relied upon by the applicant and the notification relating to exempted waste and scrap were considered, but the notification was found to be in a different context because the present case was not one of scrap arising during manufacture of excisable goods. In view of the prima facie acceptance of the appellant's case, the original authority's view was considered more appropriate for the limited purpose of interim relief.

Conclusion: The applicant was held entitled to waiver of the entire pre-deposit of duty, interest, and penalty, with stay of recovery during the pendency of the appeal.

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