Customs exemption for ICB supplies upheld in principle, supporting waiver of predeposit and stay of recovery.

An amended customs notification brought the Chandrapur and Bhusawal expansion projects within the relevant entry, and the projects were also listed as Mega Power Projects. On that basis, supplies made against international competitive bidding continued to fall within the exemption, supporting the appellant's prima facie case on duty, interest and penalty. The earlier stay granted in the appellant's own matter reinforced that view, and waiver of predeposit was granted with recovery stayed until disposal of the appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of predeposit and stay in relation to duty, interest and penalty arising from denial of exemption for supplies made against international competitive bidding to the Chandrapur and Bhusawal projects.

Analysis: The subsequent amendment to the customs notification by Notification No. 49/2012-Cus. brought the Chandrapur and Bhusawal expansion projects within the relevant entry, and the projects were specifically included in the annexed list of Mega Power Projects. This supported the view that the exemption continued to apply to goods supplied against ICB. In light of the amended notification and the earlier stay granted in the appellant's own matter, the appellant established a prima facie case.

Conclusion: Waiver of predeposit of duty, interest and penalty was granted and recovery was stayed till disposal of the appeal.

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