Exemption certificate requirement for handloom yarn supported waiver of pre-deposit and unconditional stay.

Exemption notification conditions were confined to production of the prescribed certificate from the specified apex body showing that the yarn was intended for handloom use. Since that certificate had been produced, no further obligation arose to verify actual end-use or delivery to the intended societies, and a prima facie case for waiver of pre-deposit was established. Unconditional stay was granted by dispensing with the pre-deposit requirement.

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Issues: Whether the appellant was entitled to unconditional stay by dispensing with the pre-deposit, in view of the exemption notifications and the certificate produced under the prescribed condition.

Analysis: The only condition relevant to the exemption was production of the prescribed certificate from the specified apex body to show that the yarn was to be used on handloom. The certificate had admittedly been produced. The notification did not place any further onus on the manufacturer to verify whether the yarn was actually used on handloom or whether it reached the intended societies. On that basis, the appellant made out a prima facie case for grant of stay.

Conclusion: The requirement of pre-deposit was dispensed with and unconditional stay was granted in favour of the appellant.

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