Exemption limit under Notification 175/86 applied for the full financial year, supporting waiver of pre-deposit and stay.

The Tribunal considered whether the enhanced monetary limit in paragraph 3 of Notification No. 175/86-C.E. from Rs. 150 lakhs to Rs. 200 lakhs applied to clearances for the entire financial year. It noted that a prior Tribunal decision supported that interpretation and that, at the interlocutory stage, it was bound to follow that ratio despite a contrary departmental view and a request to reconsider the earlier ruling. On that basis, the exemption limit was applied for the relevant period, and waiver of pre-deposit with stay of recovery was granted.

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Issues: Whether the enhancement of the monetary limit in paragraph 3 of Notification No. 175/86-C.E. from Rs. 150 lakhs to Rs. 200 lakhs applied to the clearances for the entire financial year, and whether, on that basis, waiver of pre-deposit of the demanded duty was justified.

Analysis: The application concerned duty demanded on clearances made during the relevant period on the footing that the benefit of the exemption notification was unavailable because the aggregate value of clearances in the preceding year exceeded the then prescribed limit. The Tribunal noted the contention that the later enhancement of the limit operated for the whole financial year, and also noted that a prior Tribunal decision had taken that view. It further observed that although a contrary departmental view existed and reconsideration of the earlier decision was suggested, it was bound at the interlocutory stage to apply the ratio of the existing decision.

Conclusion: The enhancement in the exemption limit was applied for the relevant period, and the applicant was granted waiver of pre-deposit and stay of recovery; the issue was answered in favour of the assessee.

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