Prima facie exemption for goods used in wind turbine manufacture supported waiver of balance pre-deposit and stay of recovery.

Prima facie exemption under the notification for goods used in the manufacture of wind operated electricity generators was found applicable where the appellants' rubber products were used to make rotor blades for such generators. On that basis, the pre-deposit requirement was treated as substantially satisfied because about 10% of the duty demand had already been paid, and interim relief was granted. The balance duty, interest and penalty were therefore not required to be deposited at that stage, and recovery was stayed.

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Issues: Whether the appellants were entitled to waiver of pre-deposit and stay of recovery in view of the claimed exemption under the notification for goods used in the manufacture of wind operated electricity generators.

Analysis: The rubber products manufactured by the appellants were used in the manufacture of rotor blades, which in turn were used in wind operated electricity generators. On this basis, the claimed exemption was found to be applicable at the prima facie stage. Since about 10% of the duty demand had already been deposited, the statutory pre-deposit requirement was treated as sufficiently met for interim relief under the relevant provision.

Outcome: Pre-deposit of the balance amount of duty, interest and penalty was dispensed with and recovery was stayed.

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