Prima facie capital goods classification justified waiver of pre-deposit and stay of recovery pending appeal.

At the stay stage, the Tribunal considered whether the goods could prima facie qualify as capital goods under Rule 57Q of the Central Excise Rules. On the materials and rival submissions, it found the appellant's claim arguable for interim purposes and treated the prima facie case as sufficient to justify relief. Waiver of pre-deposit of duty and penalty was granted, and recovery of the amounts was stayed pending appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit of duty and penalty and stay of recovery pending appeal.

Analysis: The dispute at the stay stage concerned whether the goods in question could prima facie be treated as capital goods under Rule 57Q of the Central Excise Rules. On consideration of the rival submissions and the materials placed, the Tribunal formed a prima facie view that the appellant's claim was valid for the purposes of interim relief.

Conclusion: Waiver of pre-deposit of duty and penalty was granted and recovery of the same was stayed.

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