Pre-deposit waiver for SEZ clearances upheld on identical prima facie reasoning under the exemption notification.

Pre-deposit of duty, interest and penalty was waived for clearances of intermediary products to a Special Economic Zone, and recovery was stayed pending appeal. The Tribunal followed its own earlier stay order in the assessee's identical case, which had taken a prima facie view that the exemption notification did not specifically exclude exports and that supplies to a Special Economic Zone were not to be treated as exempted goods for pre-deposit purposes. On that same reasoning, stay was granted in the present matter.

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Issues: Whether pre-deposit of duty, interest and penalty should be waived in respect of clearances of intermediary products to a Special Economic Zone.

Analysis: The application concerned duty demand on clearances of acetic acid, ethyl acetate and anhydride to a Special Economic Zone. The Tribunal noted that in the applicant's own earlier stay order on an identical issue, unconditional stay had been granted. The earlier order proceeded on the view that the relevant exemption notification did not make a special exclusion for exports, and that supplies to a Special Economic Zone were not to be treated as exempted goods for the purpose of pre-deposit. Following that identical reasoning, the Tribunal found it appropriate to grant stay in the present matter as well.

Conclusion: Waiver of pre-deposit was granted and recovery of duty, interest and penalty was stayed pending disposal of the appeal, in favour of the assessee.

Ratio Decidendi: Where an identical issue has already been decided in the assessee's own case on a prima facie view that supplies to a Special Economic Zone are not to be treated as exempted goods under the exemption notification, pre-deposit may be waived and recovery stayed.

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