Prima facie duty credit position and balance of convenience justified waiver of pre-deposit and stay of recovery.

A 100% EOU obtained interim protection where the Tribunal found, prima facie, that finished goods were cleared on payment of duty and that duty paid on such clearances exceeded the demand. It also noted that, if duty had been paid on the inputs, credit would have been available against the final product clearances. On that prima facie assessment, the balance of convenience favoured the applicant, and waiver of pre-deposit together with stay of recovery was granted.

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Issues: Whether, in the circumstances of the case, waiver of pre-deposit of duty, interest and penalty and stay of recovery was warranted.

Analysis: The applicant was a 100% EOU and the record showed that the finished goods were cleared on payment of duty. The Tribunal noted, prima facie, that the duty paid on clearance of the finished goods exceeded the amount demanded and that, if duty had been paid on the inputs, credit would have been available on the final product clearances. On that prima facie assessment, the balance of convenience was in favour of granting interim protection.

Conclusion: Waiver of pre-deposit and stay of recovery were granted.

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