Exemption for international competitive bidding supplies supported waiver of pre-deposit and stay of recovery pending appeal

A prima facie case was found for waiver of pre-deposit and stay of recovery where duty was demanded on MS angles cleared under an exemption notification for supply against international competitive bidding. The department's objection rested on a condition that had already been deleted from Notification No. 21/02-Cus. by Notification No. 49/06-Cus., so the exemption claim under Notification No. 6/06-C.E. was not shown, at this stage, to be untenable. Relief was therefore granted pending the appeal, with recovery of the disputed amounts stayed.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery in respect of duty demanded on MS angles cleared under exemption notification for supply against international competitive bidding.

Analysis: A prima facie case was found in favour of the appellant because the condition relied upon by the department had been deleted from Notification No. 21/02-Cus. by Notification No. 49/06-Cus. The exemption claim under Notification No. 6/06-C.E. was therefore not shown, at this stage, to be untenable.

Conclusion: Waiver of pre-deposit was granted and recovery of the disputed amounts was stayed pending the appeal.

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