Pre-deposit waiver in exemption dispute upheld on prima facie project supply and deemed export considerations.

Interim relief was considered in a dispute over denial of exemption under Notification No. 6/2006-C.E. read with Notification No. 91/2004-Cus., where the appellant claimed goods supplied for a power project qualified as components or materials for the project. The Tribunal found a prima facie case on the facts presented, noting that the subcontractor's lack of direct participation in international competitive bidding and the timing of advance authorisation for imported raw materials did not, at this stage, defeat the exemption claim. It also noted the relevance of deemed export treatment under the Import Export Policy. Waiver of pre-deposit was granted and recovery was stayed pending appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery pending appeal in a dispute concerning denial of exemption under Notification No. 6/2006-C.E. read with Notification No. 91/2004-Cus.

Analysis: The appellant manufactured and supplied goods for a power project and claimed that the supplied items formed components or materials required for the project, that the absence of direct participation in international competitive bidding by the subcontractor did not defeat the exemption claim, and that the advance authorisation obtained for import of raw materials supported the claim. The circumstances indicated a prima facie case, and the objections raised by Revenue regarding the nature of the goods, timing of the advance authorisation, and bidding participation were not found sufficient at this stage to deny interim relief. The Tribunal also noted the relevance of deemed export treatment under the Import Export Policy.

Conclusion: Waiver of pre-deposit was granted and recovery of the disputed dues was stayed during pendency of the appeal.

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