Sub-contractor exemption claim under NHAI import notification supported a strong prima facie case for waiver of pre-deposit and recovery stay.

Imported goods claimed under the NHAI exemption for goods brought in by a contractor were denied benefit only because the import was made through a sub-contractor of the joint venture awarded the work. At the stay stage, that distinction was considered too narrow on the available material, and the applicants were found to have shown a strong prima facie case for exemption coverage. Waiver of pre-deposit and stay of recovery were therefore granted.

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Issues: Whether the applicants, as a sub-contractor of the joint venture to whom the contract was awarded by NHAI, made out a prima facie case for waiver of pre-deposit and stay of recovery under Notification No. 17/2001-Cus. dated 01-03-2001.

Analysis: The imported goods were claimed to be covered by the exemption notification for goods imported by a contractor to whom work had been allotted by NHAI. The denial of benefit rested only on the fact that the import was made by a sub-contractor of the joint venture company. On the material available at the stay stage, that distinction was held to be too narrow, and the applicants were found to have established a strong prima facie case.

Conclusion: Waiver of pre-deposit and stay of recovery were granted in favour of the applicants.

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