Clarificatory exemption notification may justify waiver of pre-deposit where certificate compliance and undue hardship are shown.

A clarificatory notification issued to remove difficulty in implementing an earlier exemption notification can support waiver of pre-deposit where compliance with the certificate condition is disputed. The demand arose from alleged non-production of the required certificate at import under Notification No. 13/2010, while Notification No. 84/2010 was treated as continuing the earlier exemption and clarifying the mode of compliance. On a prima facie view, the certificate requirement remained mandatory, but the later notification indicated a curative intent and, with undue hardship shown, justified interim relief by suspending the pre-deposit requirement pending appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit in view of the exemption notification and the subsequent clarificatory notification governing production of the requisite certificate at the time of import.

Analysis: The demand arose from alleged non-compliance with the certificate condition under Notification No. 13/2010 dated 19-2-2010. The subsequent Notification No. 84/2010 dated 27-8-2010 was treated as continuing the earlier notification and as removing difficulty by clarifying the manner of compliance. On a prima facie view, production of a certificate from the proper authority was considered a mandatory condition, but the later notification appeared clarificatory in nature. In these circumstances, directing pre-deposit was considered likely to cause undue hardship pending final adjudication.

Conclusion: Waiver of pre-deposit was granted in favour of the appellant during pendency of the appeal or until 30-9-2014, whichever was earlier.

Final Conclusion: The appeal was not finally decided on merits, but interim relief was granted by suspending the pre-deposit requirement.

Ratio Decidendi: A clarificatory notification issued to remove difficulty in implementing an earlier exemption notification may justify waiver of pre-deposit where a prima facie case and undue hardship are shown.

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