Interim relief on yarn processing duty demand: instalment payment allowed pending appeal, with penalty waived on compliance.

Notification No. 53/91-C.E. was considered in relation to a confirmed duty demand on yarn processed at the spindle stage, with the applicants claiming a strong prima facie case and seeking interim relief pending appeal. The tribunal granted limited relief by directing payment of the duty amount in instalments during the appeal, while keeping the penalty waived subject to compliance with that payment direction.

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Issues: Whether, in the light of Notification No. 53/91-C.E. dated 25-7-1991, the applicants had a strong prima facie case against the confirmed duty demand on yarn processed at the spindle stage, and whether any interim relief was warranted pending appeal.

Outcome: The applicants were directed to deposit the duty amount in instalments during the pendency of the appeal, and the penalty was kept waived on compliance.

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