Assessable value dispute: prima facie case led to waiver of pre-deposit and stay of duty recovery.

Dispute over inclusion of an alleged amount in assessable value led the tribunal to find a prima facie case on the manufacturer's argument that the amount was not collected by it and had no nexus with transaction value. The revenue had not, at the interim stage, shown that the alleged per-litre amount formed part of the cost of manufacture or the assessable value. On that limited scrutiny, pre-deposit of the confirmed duty was waived and recovery of the duty demand was stayed pending disposal of the appeal.

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Issues: Whether the appellant was required to make pre-deposit of the confirmed duty and whether recovery should be stayed pending appeal in view of the dispute on inclusion of an alleged amount in the assessable value.

Analysis: The appellant's case was that the amount attributed to the purchaser's employees stationed at the factory was not collected by the manufacturer and had no nexus with the transaction value. The revenue had not, at the prima facie stage, shown that the alleged Rs. 2 per litre formed part of the cost of manufacture or the assessable value. On this limited scrutiny, the appellant established a prima facie case.

Conclusion: Waiver of pre-deposit was granted and recovery of the duty demand was stayed till disposal of the appeal.

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