Prima facie waiver of pre-deposit upheld where EPCH certificate supported exemption claim for exported furniture goods.

In a stay application concerning denial of exemption under Notification No. 21/2002-Cus., the Tribunal held that the appellant had made out a prima facie case for complete waiver of pre-deposit. The appellant had relied on an EPCH certificate permitting duty-free import of inputs for manufacture of goods ultimately exported, and the Revenue sought to dispute that certificate at the stay stage on the footing that the exported goods were only simple wooden furniture. The Tribunal held that, prima facie, once the certificate was produced, its correctness could not be questioned for the purpose of denying the exemption and insisting on pre-deposit. The stay petition was allowed.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit in respect of duty demand and penalty arising from denial of exemption under Notification No. 21/2002-Cus. on the ground that the exported goods were not handicraft wooden furniture.

Analysis: The appellant had produced an EPCH certificate permitting import of inputs duty-free for the manufacture of goods ultimately exported. At the stay stage, the Revenue sought to dispute the correctness of that certificate and to deny the notification benefit on the footing that the exported furniture was only simple wooden furniture. The Tribunal held that, prima facie, once the certificate was produced, the Revenue could not question its correctness for the purpose of denying the exemption and requiring pre-deposit.

Conclusion: The appellant established a prima facie case for complete waiver of pre-deposit, and the stay petition was allowed.

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