Domestic tariff area sales under Exim Policy supported a prima facie case, so pre-deposit and recovery were stayed.

Under Para 9.9(b) of the Exim Policy, the Tribunal noted its earlier view that where the Development Commissioner had permitted domestic tariff area sales up to a fixed value, the Revenue could not confine entitlement to 50% of FOB value of physical exports. That settled position was treated as supporting a prima facie case on merits. On that basis, pre-deposit of duty and penalty was dispensed with and recovery was stayed pending disposal of the appeals.

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Issues: Whether pre-deposit of duty and penalty should be dispensed with and recovery stayed pending appeal in a dispute concerning domestic tariff area sales under Para 9.9(b) of the Exim Policy.

Analysis: The order records that the Tribunal had already taken the view in earlier decisions that where the Development Commissioner had permitted sale of goods up to a fixed value in the domestic tariff area, the Revenue could not deny the benefit by restricting entitlement to 50% of the FOB value of physical exports. In light of that settled position, the appellants were held to have made out a prima facie case on merits.

Outcome: Pre-deposit of duty and penalty was dispensed with and recovery was stayed pending disposal of the appeals.

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