Exemption dispute over rice bran products led to complete waiver of pre-deposit and stay of recovery at the interim stage.

RICE bran fatty acids and rice bran wax were claimed to be exempt under Notification No. 89/95-CE. On the facts noted, earlier departmental treatment of the exemption claim, the appellant's request to surrender registration, and the department's later communication that the goods were exempt made the extended period and allegation of suppression, prima facie, unsustainable at the stay stage. As the appellant had already made a substantial pre-deposit and the exemption dispute required final adjudication, complete waiver of further pre-deposit and stay of recovery were granted.

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Issues: Whether the appellant was entitled to complete waiver of pre-deposit and stay of recovery in the pending appeal.

Analysis: The products in dispute were rice bran fatty acids and rice bran wax, for which exemption under Notification No. 89/95-CE was claimed. The order noted that the department had earlier considered the exemption question, the appellant had sought surrender of registration on that basis, and the department had subsequently communicated that the goods were exempt and that duty ought not to have been collected. In that background, the invocation of the extended period and the allegation of suppression were found, prima facie, unsustainable at this stage. The appellant had already deposited a substantial part of the demand, and the earlier competing views on exemption indicated that the matter required final adjudication.

Conclusion: Complete waiver of pre-deposit and stay of recovery were granted in favour of the appellant.

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