Coir content exemption for rubberised mattresses upheld for interim relief pending appeal.

Rubberised coir mattresses and cushions manufactured by the applicants were treated as eligible for exemption under Notification No. 115/75-C.E. because the Board's circular, issued in consultation with the Coir Board, clarified that rubberised coir goods containing at least 55 per cent coir qualified for the benefit. The chemical examiner's report showed coir content above that threshold, while the departmental view was based only on Revenue-supplied information and not on factory inspection or examination of the seized samples. On that record, the applicants were entitled to waiver of pre-deposit and stay of recovery pending appeal.

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Issues: Whether rubberised coir mattresses and cushions manufactured by the applicants were entitled to exemption under Notification No. 115/75-C.E. and whether pre-deposit of duty and penalty should be waived pending appeal.

Analysis: The exemption notification applied to goods manufactured by the coir industry, and the Board's circular, issued in consultation with the Coir Board, clarified that rubberised coir mattresses containing at least 55 per cent coir were eligible for the benefit. The chemical examiner's report showed coir content above 55 per cent, while the departmental opinion relied upon was based on information supplied by the Revenue and not on any inspection of the factory or examination of the seized samples. In the absence of reliable contrary evidence, the materials on record supported the applicants' claim for interim relief.

Conclusion: The applicants were entitled to waiver of pre-deposit and stay of recovery during the pendency of the appeal.

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