Bonded warehouse fire damage supported prima facie waiver of pre-deposit and stay of customs duty recovery pending appeal.

Where goods were damaged by fire while lying in a bonded warehouse, the record showed a strong prima facie case for interim protection because the goods could not be treated as having been cleared for home consumption on those facts. CEGAT therefore found that the applicant had made out a case for waiver of pre-deposit and stay of recovery of the customs duty demanded pending appeal. The operative effect was that the entire duty pre-deposit was waived and recovery was stayed during the pendency of the appeal.

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Issues: Whether the applicant had made out a prima facie case for waiver of pre-deposit and stay of recovery of the customs duty demanded in respect of goods damaged by fire while lying in a bonded warehouse.

Analysis: The goods were not disputed to have been damaged by fire while kept in the bonded warehouse in the applicant's premises. On those facts, the goods could not prima facie be treated as having been cleared for home consumption. The record therefore disclosed a strong prima facie case for granting interim protection.

Outcome: The pre-deposit of the entire duty demand was waived and recovery of the duty was stayed during pendency of the appeal.

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