Duty-free procurement under concessional rate rules stayed after prima facie finding that exemption coverage was lacking

Duty-free procurement of raw materials under concessional rate rules was challenged on the basis that the materials were not covered by any exemption notification. On a prima facie assessment, the order of the Commissioner (Appeals) allowing such procurement was found to be unsustainable in law, and the operation of that order was stayed pending final disposal of the appeal.

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Issues: Whether the operation of the order permitting duty-free procurement of raw materials under the concessional rate rules was liable to be stayed.

Analysis: The application for stay was considered on a prima facie assessment of the impugned order. The materials sought to be procured were stated to be not specified under any exemption notification, and the order of the Commissioner (Appeals) permitting such procurement was found to be prima facie unsustainable in law.

Conclusion: The operation of the impugned order was stayed till final disposal of the appeal.

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