Prima facie entitlement to notification benefit justified waiver of pre-deposit and stay despite missing certificate

At the interim stage, the Tribunal held that the assessee had made out a prima facie case for waiver of pre-deposit and stay of recovery where the benefit of Notification No. 108/95-C.E. was denied only because the prescribed certificate from the international agency had not been produced. It noted that an earlier decision had extended the same notification in comparable circumstances and, despite the department's insistence on strict compliance with the notification conditions, followed that view for purposes of interim relief. The assessee was therefore granted waiver of pre-deposit and stay of recovery.

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Issues: Whether, for the purpose of waiver of pre-deposit and stay of recovery, the assessee had made out a prima facie case for grant of the benefit of Notification No. 108/95-C.E. despite non-production of the certificate contemplated by the notification.

Analysis: The disputed demand and penalty arose from denial of the notification benefit on the ground that the prescribed certificate from the international agency had not been furnished. The Tribunal noted that an earlier decision had already extended the benefit of the same notification in comparable circumstances. Although the departmental representative questioned the correctness of that earlier view and stressed strict compliance with the notification conditions, the Tribunal held that, at the interim stage, it was bound to follow the earlier decision.

Conclusion: The assessee was entitled to waiver of pre-deposit and stay of recovery.

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