Prima facie case for waiver of pre-deposit led to stay of recovery in excise appeal.

On the material before the Tribunal, the appellants showed a prima facie case for waiver of pre-deposit because the items fabricated for use in electricity generation and distribution were argued to be non-marketable goods, with no manufacture within section 2(f) of the Central Excises and Salt Act, 1944. In light of the cited precedent, the Tribunal dispensed with pre-deposit of duty and stayed recovery proceedings during the pendency of the appeal.

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Issues: Whether the appellants were required to pre-deposit the duty amount pending appeal, and whether they had made out a prima facie case for waiver of pre-deposit.

Analysis: The appellants asserted that the items fabricated for use in electricity generation and distribution were not marketable goods and that no manufacture was involved within the meaning of section 2(f) of the Central Excises and Salt Act, 1944. The Tribunal found that, on the material before it and in the light of the cited precedent, the appellants had a prima facie case on merits.

Conclusion: The pre-deposit of duty was dispensed with and recovery proceedings were stayed during the pendency of the appeal, in favour of the appellants.

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