Exemption notification for raw silk imports cannot be restricted to local residents where no such condition is stated.

An exemption notification granting customs duty relief for raw silk imported through the specified land customs station could not be denied on the basis that the import was not made by local or tribal residents, because no such residency condition appeared in the notification. The goods were examined and customs formalities were completed at village Dogri, supporting the applicant's prima facie case. On that basis, the denial of exemption was not justified at the stay stage, and waiver of pre-deposit of duty and penalty was warranted.

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Issues: Whether the benefit of Notification No. 38/96-Cus. dated 23-7-1996 could be denied on the ground that the import was not made by local tribal residents, and whether pre-deposit of duty and penalty was required.

Analysis: The notification granted exemption from customs duty for raw silk imported through the specified land customs station. The record showed that the goods were examined at village Dogri and the customs formalities were completed there. The notification did not impose any condition that the import must be made only by tribal or local residents. On that basis, the applicant was found to have a strong prima facie case.

Conclusion: The denial of exemption on the ground of non-local import was not justified at the stay stage, and waiver of pre-deposit was warranted in favour of the applicant.

Final Conclusion: The stay applications were allowed and the duty and penalty deposit requirement was dispensed with.

Ratio Decidendi: Where an exemption notification does not prescribe a condition restricting import to local or tribal residents, such a restriction cannot be read into it for denying interim relief.

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