Customs exemption notification amendment treated as substantive change, supporting aircraft parts exemption and waiver of pre-deposit.

Imported aircraft parts were treated as covered by the earlier exemption entry in Notification No. 21/2002 dated 01-03-2002. The later customs exemption notification was viewed as restricting the benefit by reference to Chapter Heading 88.03, while the amendment made on 06-03-2007 expanded the expression to cover parts falling under any chapter. On that reasoning, the later change was regarded as amending rather than merely clarificatory, and the earlier exemption position was taken to support coverage of the disputed period. A prima facie case for waiver of pre-deposit and stay of recovery was therefore found.

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Issues: Whether the subsequent customs exemption notification was clarificatory or amending in nature and, on that basis, whether the appellant had made out a prima facie case for waiver of pre-deposit and stay of recovery.

Analysis: The imported aircraft parts were covered by the earlier exemption entry in Notification No. 21/2002 dated 01-03-2002. The later notification initially restricted the benefit by reference to Chapter Heading 88.03, and the amendment made on 06-03-2007 expanded the expression to cover parts falling under any chapter. On this reasoning, the change was treated as an amending notification rather than a mere clarification. Since the earlier exemption entry had already granted benefit to aircraft parts falling under any chapter, the subsequent amendment was taken to support the same exemption position for the disputed period.

Conclusion: The issue was answered in favour of the appellant, and a prima facie case for waiver of pre-deposit was found.

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