Pre-deposit dispensation for disputed exemption on solar cookers with electrical back-up was granted in a stay petition.

Solar cookers were covered by an exemption notification, but solar cookers with electrical back-up were treated as outside its scope, making the applicability of the exemption an arguable issue. On that basis, and having regard to the appellant's status as a Government-owned small scale undertaking, insistence on pre-deposit of duty and penalty was considered unnecessary for entertaining the appeal. The appellant was therefore granted dispensation from pre-deposit, and the stay petition was allowed.

---

---

Issues: Whether the appellant was entitled to dispense with the pre-deposit condition in respect of the duty and penalty imposed on solar cookers with electrical back-up, in view of the exemption notification and the arguable nature of the dispute.

Analysis: Solar cookers were exempted under the notification, while solar cookers with electrical back-up were treated as outside its scope. The question whether such cookers were still covered by the exemption was found to be an arguable point. In these circumstances, and having regard to the appellant being a Government-owned small scale undertaking, insistence on pre-deposit was considered unnecessary for entertaining the appeal.

Conclusion: The appellant was granted dispensation from pre-deposit, and the stay petition was allowed.

---