Exemption entry benefit for special purpose motor vehicles secured interim waiver of pre-deposit and stay of recovery.

Drilling rigs mounted on motor vehicle chassis were treated prima facie as special purpose motor vehicles under Heading 87.05 and sub-heading 8705.2000, making them eligible for the more beneficial exemption entry for such vehicles. Where goods appear to fall under more than one exemption entry, the assessee is entitled at the interim stage to the entry granting greater relief, provided the relevant condition is also prima facie satisfied. As the asserted payment of duty on the chassis and compressor was unrebutted, unconditional waiver of pre-deposit and stay of recovery were granted pending the appeals.

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Issues: Whether the applicants had made out a prima facie case for unconditional waiver of pre-deposit and stay of recovery on the footing that the drilling rigs mounted on motor vehicle chassis were covered by the more beneficial exemption entry.

Analysis: The goods were treated, on the face of the record, as special purpose motor vehicles falling under Heading 87.05 and sub-heading 8705.2000. On that basis, they were held to be prima facie covered by Serial No. 217 of the notification, which applied to special purpose motor vehicles. The principle that where goods answer more than one exemption entry, the assessee is entitled to the benefit of the entry granting greater relief was applied. The condition attached to the claimed exemption entry was also found to be prima facie satisfied, as the asserted payment of duty on the chassis and compressor was unrebutted.

Conclusion: The applicants were held entitled to unconditional waiver of pre-deposit and stay of recovery pending the appeals.

Final Conclusion: Interim relief was granted because the goods were treated as prima facie eligible for the more beneficial exemption entry, and recovery was stayed during the pendency of the appeals.

Ratio Decidendi: Where goods are prima facie covered by more than one exemption entry, the assessee is entitled at the interim stage to the benefit of the entry that grants the greater relief if the relevant condition is also prima facie satisfied.

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