Prima facie exemption claim justified waiver of pre-deposit despite components sourced from a power-using manufacturer.

Exemption for goods manufactured without the aid of power was held to raise a prima facie case for waiver of pre-deposit where the department relied only on the fact that certain components came from an independent manufacturer using power. At the stay stage, that circumstance alone was found insufficient to deny the notification benefit. The appellants' materials and legal submissions were treated as adequate to justify dispensing with pre-deposit and granting stay of recovery of the confirmed duty demand.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit and stay of recovery of the confirmed duty demand, having regard to the claimed exemption under the notification and the department's objection based on components received from an independent manufacturer.

Analysis: The appellants disputed the duty demand and relied on the exemption notification for goods manufactured without the aid of power. The demand was sought to be sustained on the basis that certain components were received from an independent manufacturer who used power. On a prima facie assessment, that circumstance alone was held insufficient to deny the benefit of the notification at the stay stage. The materials on record and the legal submissions cited by the appellants were found sufficient to show a prima facie case for dispensing with the pre-deposit.

Conclusion: The appellants were entitled to waiver of pre-deposit and stay of recovery.

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