SEZ documentation requirements denied full pre-deposit waiver for contractor clearances, but conditional stay was granted

SEZ duty benefits for clearances to contractors or sub-contractors were treated as available only where the prescribed documents also identified the developer or co-developer. Because the cement was cleared to contractors but the documents did not mention the developer or co-developer, a complete waiver of pre-deposit was not justified on the prima facie record. The surrounding facts, however, supported only partial interim protection, so conditional stay was granted with a requirement to deposit 25% of the duty confirmed in each case and waiver of the balance during the appeal.

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Issues: Whether the appellants were entitled to complete waiver of pre-deposit in a duty demand arising from clearance of cement to contractors for SEZ developers, where the documents did not bear the name of the developer or co-developer.

Analysis: The applicable SEZ framework extends benefits available to a developer or co-developer to contractors and sub-contractors only if the prescribed documentation also bears the name of the developer or co-developer along with the contractor. Since the goods were admittedly cleared to contractors but the documents contained no reference to the developer or co-developer, the appellants did not establish a prima facie case for total waiver. At the same time, the surrounding facts justified partial protection by way of conditional stay.

Conclusion: Complete waiver of pre-deposit was declined, and the appellants were directed to deposit 25% of the duty confirmed in each case, with waiver of the balance and stay of recovery during the pendency of the appeals.

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