Pre-deposit waiver under customs exemption conditions granted where goods were used in aquaculture operations pending appeal.

Pre-deposit of customs duty and penalty was waived, and recovery stayed pending appeal, where the Tribunal found a prima facie case under the applicable exemption notification. The dispute arose from alleged non-fulfilment of Notification No. 196/94-Cus., but the assessee contended that imported capital goods, raw materials and indigenously procured goods were used for the operational needs of an aquaculture farm. In the absence of any allegation or finding that the goods were not used in production, and considering the notification language, the Tribunal treated the waiver request as justified on a prima facie basis.

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Issues: Whether a prima facie case was made out for waiver of pre-deposit of duty and penalty and stay of recovery pending appeal, having regard to the condition of the applicable exemption notification and the use of the imported and indigenously procured goods.

Analysis: The applications concerned pre-deposit of duties and penalties arising from demands based on alleged non-fulfilment of the conditions of Notification No. 196/94-Cus. The Tribunal noted the submission that the imported capital goods, raw material and indigenously procured goods had been put to use in the operational requirements of the aquaculture farm, and that crop failure prevented fulfilment of the export obligation. In the absence of any averment or finding that the goods were not used in production, and having regard to the language of the notification, the Tribunal found that a prima facie case for waiver was made out.

Conclusion: The requirement of pre-deposit of duty and penalty was waived and recovery was stayed pending the appeals.

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