Prima facie marketability and no suppression justified waiver of pre-deposit and stay of duty recovery in an excise dispute.

At the interim stage, the CEGAT granted waiver of pre-deposit and stayed recovery in a duty dispute concerning the excisability and marketability of cinematographic processing chemicals and residual chemical preparations. The Tribunal found that the Commissioner had relied on evidence from a different area of photography, which did not prima facie establish marketability of the goods in issue, and the record did not show prima facie suppression by the applicant. On that basis, the demand recovery was stayed pending disposal of the appeal.

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Issues: Whether waiver of pre-deposit and stay of recovery should be granted in a demand dispute concerning excisability and marketability of cinematographic processing chemicals and residual chemical preparations, and whether there was any prima facie suppression by the applicant.

Analysis: The Tribunal held, at the interim stage, that the Commissioner had relied upon evidence relating to a different area of photography and that such material did not prima facie establish marketability of the goods in question. The record also did not show any suppression by the applicant.

Outcome: Waiver of pre-deposit was granted and recovery of the duty demand was stayed during the pendency of the appeal.

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