Ex parte stay order modification and waiver of pre-deposit granted for Sulphuric Acid exemption dispute

Modification of an ex parte stay order was held maintainable where the earlier order had been passed despite an adjournment request. The appellant's claim to exemption for clearances of Sulphuric Acid to fertilizer units under Notification No. 4/2006-C.E. was treated as identical to an issue earlier considered by the same Bench, where unconditional waiver had been granted on the strength of Tribunal precedent and approval by the Gujarat High Court. On that basis, the stay order was modified, pre-deposit was waived, and recovery was stayed pending disposal of the appeals.

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Issues: Whether the appellant was entitled to modification of the ex parte stay order and waiver of pre-deposit, with recovery stayed pending disposal of the appeals.

Analysis: The modification application was maintainable because the earlier stay order had been passed ex parte despite an adjournment request. The appellant relied on exemption under Notification No. 4/2006-C.E. for clearances of Sulphuric Acid to fertilizer units. The issue was found to be identical to one earlier considered by the same Bench, where unconditional waiver had been granted following Tribunal decisions and the Gujarat High Court's approval of the Tribunal's view. In that background, the Court found it to modify the stay order and grant protection from pre-deposit and recovery.

Conclusion: The modification application was allowed and the appellant was granted waiver of pre-deposit with recovery stayed till disposal of the appeals.

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