Pre-deposit waiver in export refund dispute: prima facie duty relief on inputs barred recovery during the stay application.

Pre-deposit was waived in a dispute over an alleged erroneous refund relating to Additional Excise Duty paid on inputs used in exported goods, because the claim was supported by the principle that exported goods and the inputs used in their manufacture should not bear the relevant duty burden. The Tribunal noted that the Board's clarification dated 9-2-2004 reinforced the appellant's prima facie case. It also held that recovery by adjustment during pendency of the stay application was impermissible, and directed restoration of any amount already recovered.

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Issues: Whether pre-deposit of the demanded amount should be waived and recovery stayed in respect of alleged erroneous refund relating to Additional Excise Duty paid on inputs used in exported goods.

Analysis: The relief claimed concerned duty paid on inputs used in the manufacture of exported goods. Exported goods are entitled to relief from the duties burdening them and the inputs used in their manufacture, and the Board's clarification dated 9-2-2004 supported the appellant's claim. On this prima facie view, insistence on pre-deposit was not warranted. The Tribunal also held that recovery by adjustment during pendency of the stay application was impermissible.

Conclusion: Pre-deposit was waived and recovery was stayed, with direction to restore any amount already recovered from the appellant.

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