Notification eligibility for complete conversion devices supported waiver of pre-deposit and stay of recovery in appeal.

CSTAT, Mumbai noted a prima facie case that cranes supplied as complete conversion devices producing energy may fall within the relevant entry under Notification No. 6/2002, rather than being treated merely as parts. It also observed that the captive-consumption condition relied on by the department may not be decisive in the manner urged against the applicants, and that any duty incidence on non-fulfilment of conditions could lie with the recipient under the cited procedure. On that basis, the Tribunal granted waiver of pre-deposit and stay of recovery pending appeal.

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Issues: Whether the applicants were entitled to waiver of pre-deposit of duty and penalty and stay of recovery pending appeal on a prima facie assessment of the applicability of Notification No. 6/2002 dated 01-03-2002.

Analysis: The Tribunal recorded a prima facie view that the cranes supplied were complete conversion devices producing energy and could fall within the relevant list for the notification, rather than being merely parts. It also noted the contention that the eligibility condition regarding captive consumption, relied upon by the department, may not be determinative in the manner suggested against the applicants, and that the incidence of duty could, in the event of non-fulfilment of conditions, lie with the recipient under the cited procedure.

Conclusion: The applicants were granted waiver of pre-deposit and stay of recovery pending the appeal.

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