Waiver of pre-deposit for naptha exemption dispute granted with conditional deposit pending full appeal hearing.

Interim relief in a dispute over Notification No. 75/81 for naptha used during plant restart and reactivation turned on whether the use fell within maintenance, initial setting up and commissioning, or a technological necessity in continuing manufacture. The Tribunal held that these distinctions required detailed examination of technical material and case law at the main appeal stage, not at the stay stage. On the comparable facts and cited legal position, it granted waiver of pre-deposit and stay of recovery, but made relief conditional on deposit of Rs. 1 crore within the stipulated time.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery of the disputed amount in a claim concerning the benefit of Notification No. 75/81 for naptha used during plant restart and reactivation.

Analysis: The Tribunal found the dispute broadly similar to an earlier stay matter, though not identical in all respects. It held that the merits involved an arguable distinction between naptha used for maintenance proper, for initial setting up and commissioning, and for a technological necessity in continuing the manufacturing process. Those questions required detailed examination of technical material and case law at the hearing of the main appeal rather than at the stay stage. The overall facts, the comparable bench order, and the cited legal position justified interim protection, though conditional relief was considered appropriate.

Conclusion: Waiver of pre-deposit and stay of recovery were granted, subject to deposit of Rs. 1 crore within the stipulated time.

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