Excise duty on manufactured barge: pre-deposit waived as limitation and exemption notification issues favoured the applicant.

Pre-deposit of duty and penalty was waived in an excise dispute over a manufactured barge, as the Tribunal found a prima facie case on excisability but treated limitation as a strong point for the applicant. It noted the exemption framework for ocean-going vessels manufactured in and cleared from a customs bonded warehouse, the department's conduct on customs duty, and the applicant's reasonable belief that excise duty was not payable. It also found a prima facie basis to examine whether Notification 25/97, restoring exemption, could apply retrospectively to the barge, and ordered recovery stayed.

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Issues: Waiver of pre-deposit of duty and penalty in a dispute concerning excise duty on a manufactured barge, including prima facie liability, limitation, and the effect of exemption notifications.

Analysis: The Tribunal found a prima facie case in favour of excisability of the barge but considered that limitation was a strong point for the applicant. It noted the exemption regime for ocean-going vessels manufactured in and cleared from a customs bonded warehouse, the departmental conduct on customs duty, and the applicant's reasonable belief that excise duty was not payable. It also observed a prima facie basis for considering whether Notification 25/97 restoring exemption could apply retrospectively to the barge.

Outcome: Deposit of duty and penalty was waived and recovery was stayed.

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