Pre-deposit waiver in customs duty dispute limited where kerosene supplies outside Public Distribution System exemption were not covered.

In a customs duty dispute over differential duty on imported Superior Kerosene Oil, complete waiver of pre-deposit was declined because the exemption notification applied only to sales through the Public Distribution System. Supplies made to Railways and the Air Force/Defence were outside the notification, while sales through the Public Distribution System beyond the quota were treated as prima facie covered. Conditional relief was therefore granted instead of full waiver, after crediting the amount already deposited, and recovery was stayed pending the appeal.

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Issues: Whether the appellant had made out a prima facie case for complete waiver of pre-deposit in a customs duty dispute concerning differential duty on imported Superior Kerosene Oil.

Analysis: The exemption notification relied upon applied only where Superior Kerosene Oil was for sale through the Public Distribution System. The records showed supplies to Railways and Air Force/Defence, which fell outside that exemption. However, the demand relating to sale through the Public Distribution System beyond the quota was treated as prima facie covered by the notification. On that basis, complete waiver was not justified, but conditional relief was warranted after taking into account the amount already deposited.

Conclusion: The appellant was not entitled to complete waiver of pre-deposit, but was granted conditional waiver of the balance demand on depositing a further sum within the time allowed, with recovery stayed pending the appeal.

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