Prima facie case for exemption dispute secured unconditional waiver of pre-deposit and stay of recovery

Industrial tractors used in critical launch-vehicle operations were treated as technical equipment integral to the project where certification showed use for transporting rocket fuel, propellant materials, samples, hardware, segments and motors from magazine buildings to the launch pad. On that basis, the disputed denial of exemption under the relevant notification supported a strong prima facie case against the duty demand. The appellant was therefore entitled to unconditional waiver of pre-deposit and stay of recovery during pendency of the appeal.

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Issues: Whether the appellant had made out a prima facie case for unconditional waiver of pre-deposit and stay of recovery of the duty demand arising from denial of exemption under the relevant notification.

Analysis: The goods were industrial tractors procured for use in critical launch-vehicle operations. The certification on record showed that they were to be used for transporting rocket fuel, propellant materials, samples, hardware, segments and motors from magazine buildings to the launch pad. On this material, the tractors were treated as technical equipment forming part of the launch vehicle project, supporting the claim that the demand arose from a disputed denial of exemption and that the appellant had a strong prima facie case.

Conclusion: The appellant was entitled to unconditional waiver of pre-deposit and to stay of recovery during the pendency of the appeal.

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