Advance licence clearances and prima facie limitation justified complete waiver of pre-deposit and stay of recovery.

Clearances made against advance release orders and advance licences were treated as covered by the applicable export policy notification where the goods were produced by licence holders and countersigned by the jurisdictional excise authorities. The objection based on alleged violations of the Foreign Trade Policy was regarded as a matter for DGFT authorities rather than a ground for denying interim relief. A prima facie limitation concern also supported the assessee, because the clearances were made between 2005 and 2008 while the show cause notice was issued in 2010. On that basis, complete waiver of pre-deposit and stay of recovery were granted pending appeal.

---

---

Issues: Whether the appellant was entitled to complete waiver of pre-deposit and stay of recovery in respect of the confirmed duty, interest and penalty arising from clearances made against advance release orders and advance licences.

Analysis: The Notification in question covered clearances to a person holding an advance release order or advance licence under the relevant export policy provision. The record showed that the goods were cleared against advance release orders produced by advance licence holders and countersigned through the jurisdictional excise authorities. The challenge based on alleged violation of paragraphs 6.8 and 6.9 of the Foreign Trade Policy was held to be a matter for the DGFT authorities. The Tribunal also noted a prima facie limitation issue, as the clearances were made during 2005 to 2008 while the show cause notice was issued only in 2010, and the clearances had been countersigned by the range Superintendent.

Conclusion: The appellant made out a prima facie case for complete waiver of pre-deposit, and recovery was stayed pending disposal of the appeal.

Ratio Decidendi: Where clearances are made against advance release orders or advance licences in terms of the applicable export policy notification, and the challenge primarily turns on alleged foreign trade policy violations and prima facie limitation concerns, complete waiver of pre-deposit may be granted.

---