Prima facie non-excisability of ropeway parts supported waiver of pre-deposit and stay of recovery pending appeal.

A strong prima facie case was found for waiver of pre-deposit and stay of recovery because the aerial ropeway system was argued to be immovable property and not excisable goods. The Tribunal noted, prima facie, that the parts and fabricated materials lying at site did not appear to constitute a complete ropeway system so as to attract Rule 2(a) of the Interpretative Rules. It also observed that the cited authority supported the view that merely bringing parts together at site does not necessarily amount to manufacture. Pre-deposit of duty and penalty was dispensed with and recovery stayed pending the appeal.

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Issues: Whether a strong prima facie case was made out for waiver of pre-deposit of duty and penalty and stay of recovery during the pendency of the appeal.

Analysis: The applicants contended that the aerial ropeway system was immovable property and therefore not excisable goods, and that the parts lying at site could not be treated as a complete ropeway system in an unassembled or knocked down condition so as to attract Rule 2(a) of the Interpretative Rules. The Tribunal noted, prima facie, that Rule 2(a) did not appear to apply to treat the parts and fabricated materials as a complete ropeway system, and that the cited case law supported the contention that mere bringing together of parts at site would not necessarily amount to manufacture.

Conclusion: A strong prima facie case for waiver was made out; pre-deposit of duty and penalty was dispensed with and recovery was stayed during the pendency of the appeal.

Final Conclusion: The interim relief application succeeded, and the appellant was protected from deposit and recovery pending disposal of the appeal.

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