SEZ to DTA movement and Customs exemption supported a prima facie case for stay of recovery in a refund dispute.

Waiver of pre-deposit and stay of recovery were granted in a refund dispute under Notification No. 102/2007-Cus. The adjudicating authority had sanctioned the refund, but the first appellate authority denied the benefit on the ground that the goods were not imported from an SEZ unit. The Tribunal noted the SEZ development authority's instructions treating Customs exemptions as applicable and proceeded on the basis that movement between SEZ and DTA is to be treated as export/import for the relevant purpose. On that footing, the appellant was found to have established a prima facie case, and recovery was stayed until disposal of the appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery in relation to refund claimed under Notification No. 102/2007-Cus. dated 14-9-2007.

Analysis: The refund had been sanctioned by the adjudicating authority, but the first appellate authority denied the benefit on the premise that the goods were not imported from an SEZ unit. The order notes the SEZ development authority's instructions treating exemptions under the Customs law as applicable and proceeds on the basis that movement between SEZ and DTA is to be treated as export/import for the relevant purpose. On that footing, the appellant was found to have made out a prima facie case.

Conclusion: Waiver of pre-deposit was granted and recovery was stayed till disposal of the appeal.

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