Exemption notification conditions and Indo-Nepal Treaty claim did not justify stay; order found neither illegal nor without jurisdiction.

Imports from Nepal were examined in relation to exemption notification conditions and the claimed overriding effect of the Indo-Nepal Treaty. The appellate order was challenged on the basis that the Treaty displaced the notification conditions, with reliance placed on a departmental circular and DGFT clarification. The Tribunal noted the principle in Ratan Melting & Wire Industries that binding circulars govern the Department, and found no basis to treat the appellate order as ex facie illegal or without jurisdiction. On that footing, a stay of the order was not warranted and the stay petitions were dismissed.

---

---

Issues: Whether the operation of the appellate order should be stayed in view of the challenge based on the notification conditions and the claimed overriding effect of the Indo-Nepal Treaty.

Analysis: The proceedings concerned imports from Nepal and the applicability of the exemption notification conditions. The order under challenge had proceeded on the basis that the Indo-Nepal Treaty would override the notification conditions, and support was drawn from the departmental circular and the DGFT clarification. The Tribunal noted that the Supreme Court's ruling in Ratan Melting & Wire Industries recognised that binding circulars govern the Department, and found no case that the appellate order was ex facie illegal or without jurisdiction.

Conclusion: The request for stay was not justified and the stay petitions were dismissed.

---