Prima facie case for customs exemption supported waiver of pre-deposit and stay of recovery pending appeal.

A strong prima facie case for interim relief was found where duty had been confirmed on the view that the imported antenna sub-system did not qualify as an antenna for exemption under Notification No. 25/2005-Cus. The appellant relied on product literature and on the treatment of similar imports under Notification No. 21/2002-Cus., which supported its claim for exemption. On that basis, waiver of pre-deposit of duty and penalty was granted and recovery was stayed pending appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit of duty and penalty and stay of recovery pending appeal.

Analysis: Duty had been confirmed on the view that the imported antenna sub-system was not an antenna eligible for exemption under Notification No. 25/2005-Cus. dated 1-3-2005. The appellant relied on the product literature and on the treatment accorded to similar imports under Notification No. 21/2002-Cus. dated 1-3-2002. In view of these materials, a strong prima facie case was made out for interim relief.

Conclusion: Waiver of pre-deposit of duty and penalty was granted and recovery was stayed pending the appeal.

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