Reverse osmosis membrane exemption denied where only complete water purification equipment qualified under the notification.

Imported reverse osmosis membranes were held not to qualify as exempt water purification equipment under Notification No. 6/2007-C.E. because the exemption covered the complete equipment based on specified technologies, not parts separately classifiable under sub-heading 8421 99. On that reading of the notification with the tariff entries, the nil rate applied only to the full equipment, and the imported item remained outside the exemption. Waiver of pre-deposit and stay of recovery were also refused because no prima facie case or financial hardship was shown, and the appellant was directed to pre-deposit the entire duty demand.

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Issues: Whether the imported reverse osmosis membrane qualified for exemption under Notification No. 6/2007-C.E. dated 01.03.2007 as water purification equipment based on reverse osmosis technology, and whether waiver of pre-deposit and stay of recovery should be granted.

Analysis: The exemption covered water purification equipment based on specified technologies, including reverse osmosis technology using thin film composite membrane. The imported item was only a reverse osmosis membrane and not the complete water purification equipment. On a reading of the notification with the tariff entries, the complete equipment alone was eligible for the nil rate of duty, while parts of such equipment were separately classifiable under sub-heading 8421 99 and did not fall within the exemption. The appellant also did not establish a prima facie case or plead financial hardship.

Conclusion: The appellant was not entitled to waiver of pre-deposit or stay, and was directed to pre-deposit the entire duty demand.

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