Exemption under Customs notification turns on machine paving capacity, with the issue referred to a Larger Bench.

Exemption under Notification No. 21/2002-Cus. was treated as turning on whether the machine had the capacity to lay bituminous pavement of 7 metres and above, rather than on its physical width alone. On the material cited, the catalogue showing a maximum pave width of 10 metres supported the view that the requirement was met. Because an earlier Coordinate Bench had reached a different view, the exemption question was directed to a Larger Bench for determination, and interim stay of the impugned orders was declined.

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Issues: Whether interim stay of the impugned orders should be granted, and whether the matter concerning exemption under Notification No. 21/2002-Cus. should be referred to the Larger Bench.

Analysis: The Tribunal accepted the respondents' contention that the notification turns on the machine's capacity to lay bituminous pavement of 7 metres and above, not on the physical width of the equipment alone. On the material placed, the catalogue indicated a maximum pave width of 10 metres, supporting the view that the machine met the notification requirement. However, since a Coordinate Bench had taken a different view in an earlier matter, the Tribunal considered it appropriate to seek determination by a Larger Bench on the exemption question.

Conclusion: Interim stay of the impugned orders was declined, and the exemption issue was directed to be placed before the Larger Bench for decision.

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