Concessional customs duty for melting scrap and end-use compliance supported waiver of pre-deposit and recovery stay pending appeal.

Imported goods were treated prima facie as re-melting scrap ingots under CTH 7204.50, bringing them within the concessional duty entry for melting scrap of iron or steel under Notification No. 16/2000-Cus. The applicants also produced an end-use certificate showing full consumption of the goods for melting in their factory, supporting compliance with the stipulated end-use condition. On that basis, a prima facie case was found for interim protection, and waiver of pre-deposit with stay of recovery was granted pending disposal of the appeal.

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Issues: Whether the applicants were entitled to waiver of pre-deposit and stay of recovery pending appeal on the basis that the imported goods were covered by the concessional rate available under Notification No. 16/2000-Cus. and that the prescribed end-use condition was satisfied.

Analysis: The goods were treated, at least prima facie, as re-melting scrap ingots under CTH 7204.50. Notification No. 16/2000-Cus. extended concessional duty to melting scrap of iron or steel falling under Chapter Heading 72.04. The applicants also produced the end-use certificate showing consumption of the goods in full for melting within their factory. On that basis, a prima facie case was made out for grant of interim relief.

Conclusion: Waiver of pre-deposit and stay of recovery were granted pending disposal of the appeal.

Final Conclusion: Interim relief was allowed and the demand was kept in abeyance during the pendency of the appeal.

Ratio Decidendi: Where the imported goods prima facie fall within the tariff description covered by the exemption notification and the stipulated end-use requirement is supported by evidence, pre-deposit may be waived and recovery stayed pending appeal.

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