Deemed export supplies under International Competitive Bidding supported waiver of further pre-deposit pending appeal.

Supplies by a 100% EOU to a project under International Competitive Bidding were treated as deemed exports under the applicable Export-Import Policy framework, and that prima facie position supported relief from further deposit. Because the appellant had already paid a substantial amount and furnished a bank guarantee, the remaining duty and interest were not required to be pre-deposited for the appeal to be heard. The bank guarantee was directed to remain alive during pendency of the appeal.

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Issues: Whether, in the facts of a 100% EOU clearing goods against International Competitive Bidding for a project financed by an international agency, the pre-deposit of the remaining duty and interest should be waived pending appeal.

Analysis: The goods were cleared without payment of duty under the Export-Import Policy framework governing supplies treated as deemed exports. The relevant policy provisions treated supplies to projects under International Competitive Bidding or similar procedure as deemed export, and the records showed that the appellant had already deposited a substantial amount and furnished bank guarantee. On a prima facie view, the demand was not such as to require further pre-deposit for hearing of the appeal.

Conclusion: The requirement of pre-deposit of the remaining dues was waived and the stay petition was allowed, with the bank guarantee directed to be kept alive during pendency of the appeal.

Ratio Decidendi: Supplies by a 100% EOU to projects under International Competitive Bidding, where treated as deemed export under the applicable policy, can justify waiver of further pre-deposit on a prima facie assessment of the demand.

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