Customs exemption and limitation: refinery-related imports secured prima facie relief under Notification No. 21/2002-Cus.

Imported goods claimed exemption under Notification No. 21/2002-Cus. for use in setting up, running, repairing or maintaining a crude petroleum refinery, and the notification was read harmoniously so the specific entry for accessories and replacement items retained effect. On limitation, the bill of entry disclosed the nature and intended use of the goods, and the subsequent show cause notice was issued beyond the normal period; on these facts, invocation of the extended period was not justified at the stay stage. The appellants were held to have established a prima facie case on both merits and limitation, and unconditional stay was granted.

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Issues: Whether the appellants made out a prima facie case for unconditional stay on the claim of exemption under Notification No. 21/2002-Cus. and on the plea of limitation.

Analysis: The imported goods were claimed to fall within the exemption scheme for goods required for setting up, running, repairing, or maintaining a crude petroleum refinery. The notification was read harmoniously so that the specific entry for accessories and replacement items was not rendered ineffective. On limitation, the bill of entry disclosed the nature and intended use of the goods, and the subsequent show cause notice was issued beyond the normal period. On these facts, invocation of the extended period was not justified at the stay stage.

Conclusion: The appellants established a prima facie case on merits and limitation, and unconditional stay was granted in their favour.

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