Prima facie non-excisability of brown sugar supported waiver of pre-deposit and stay of recovery in the appeal.

Brown sugar was treated as not shown to be excisable goods under the Tariff, and the Delhi High Court view that Rule 9 and Rule 49 could not be applied to it supported interim relief in the stay application. On that basis, the applicant established a prima facie case for waiver of pre-deposit and suspension of recovery pending the appeal. The order therefore granted stay of recovery and dispensed with pre-deposit of duty, limited to the interim stage and without deciding final duty liability.

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Issues: Whether brown sugar, in the facts of the stay application, could be subjected to central excise duty and whether the applicant had made out a prima facie case for waiver of pre-deposit and stay of recovery.

Analysis: The order noted the earlier Delhi High Court view that Rule 9 and Rule 49 could not be applied to brown sugar which was not shown to be excisable goods as specified in the Tariff. On that basis, the applicant was found to have established a prima facie case for interim relief.

Outcome: Pre-deposit of duty was waived and recovery was stayed pending disposal of the appeal.

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