Prima facie case for waiver of pre-deposit where clubbing of clearances and label classification required detailed scrutiny.

Prima facie relief was found justified in appeals challenging demands based on the classification of printed wrappers and labels, clubbing of clearances of two units for SSI exemption, and limitation. The record did not show sufficient independent reasons to sustain the clubbing finding at the interim stage, and the dispute required detailed examination of the evidence at final disposal. On that basis, the applicants were held to have established a prima facie case for waiver of pre-deposit, and recovery of the adjudged dues was stayed pending the appeals.

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Issues: Whether the applicants made out a prima facie case for waiver of pre-deposit and stay of recovery pending appeal.

Analysis: The applications arose from demands confirmed on the basis of classification of printed wrappers/labels and clubbing of clearances of two units for SSI exemption purposes. The disputed duty liability involved issues on dutiability of biri labels, the propriety of clubbing the clearances of the two entities, and limitation, including the applicability of the extended period. The record did not disclose sufficient independent reasons to sustain the clubbing conclusion at the interim stage, and the issue required detailed examination on the evidence at the time of final disposal. In these circumstances, the applicants established a prima facie case for interim relief.

Conclusion: Pre-deposit of the dues adjudged was waived and recovery stayed during the pendency of the appeals.

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