Exemption eligibility for foot-operated pumps supported waiver of pre-deposit and stay of recovery pending appeal.

Waiver of pre-deposit and stay of recovery were granted in excise appeals concerning exemption eligibility for foot-operated pumps. The Tribunal found that the appellants had shown a strong prima facie case, relying on the proposition that exemption is not denied merely because the unit did not itself clear the goods. On that basis, interim protection was allowed pending final hearing of the appeals.

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Issues: Whether the appellants were entitled to waiver of pre-deposit and stay of recovery pending disposal of the appeals.

Analysis: The appeals arose from a demand of central excise duty and penalties concerning exemption eligibility for foot-operated pumps. The Tribunal found that the appellants had made out a strong prima facie case, particularly in light of the cited Tribunal decision relied upon for the proposition that eligibility for exemption is not negated merely because the unit did not itself clear the goods. On that basis, the Tribunal granted interim protection.

Conclusion: Waiver of pre-deposit was granted and recovery was stayed pending final hearing of the appeals.

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