Exemption for non-conventional energy goods and piecemeal clearances failed at pre-deposit stage, with partial relief granted.

An exemption claim for goods said to form part of a non-conventional energy system/device was rejected at the pre-deposit stage because the clearances were made in successive invoices over a period without following the prescribed procedure for piecemeal removal. The materials on record did not establish prima facie eligibility for the exemption at that stage, although financial hardship was also considered. Partial relief was granted by directing a pre-deposit of Rs. 1 lakh within six weeks.

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Issues: Whether the appellants had made out a case for waiver of pre-deposit in respect of the duty demand arising from denial of the exemption claimed for goods cleared as a non-conventional energy system/device, and whether the claimed piecemeal clearances satisfied the statutory procedure.

Analysis: The appellants claimed exemption under Notification No. 6/2002 for goods falling under the description of a non-conventional energy system/device, asserting that the goods were too bulky to be cleared in a single consignment and were therefore removed in successive invoices. The record showed that the clearances were made over a period and that the statutory procedure for piecemeal clearance had not been followed. On that basis, the goods were not accepted as eligible for the exemption at this stage. Financial hardship was also considered from the materials placed on record.

Conclusion: The appellants were directed to pre-deposit Rs. 1 lakh within six weeks, indicating only partial relief at the interlocutory stage.

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