Prima facie case for waiver of pre-deposit accepted in dispute over duty-free packing materials and export-linked exemptions.

Packing materials procured duty-free under Notification No. 43/2001-C.E. (N.T.) for export-related use under advance licences were alleged by the Revenue to be ineligible because the appellant also claimed benefit of the customs notification for imported inputs. The Tribunal treated any breach of the customs notification as ordinarily affecting customs duty on the imported materials, not the domestically procured packing materials, and on that prima facie basis found sufficient grounds for interim protection. Relying on an earlier stay order, it granted waiver of pre-deposit and stayed recovery of the demanded duty and penalty.

---

---

Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit and stay of recovery of the demanded duty and penalty.

Analysis: The dispute concerned duty demanded on packing materials procured duty-free under Notification No. 43/2001-C.E. (N.T.) and used in export-related activity under advance licences, where the Revenue alleged that the appellant could not simultaneously take benefit of the customs notification governing the imported inputs. The Tribunal noted that any breach of the customs notification would ordinarily have consequences in customs duty on the imported materials, while the packing materials themselves were procured domestically under the excise notification. On that prima facie view, and relying on an earlier stay order cited before it, the Tribunal found that the appellant had shown a sufficient case for interim protection.

Conclusion: Waiver of pre-deposit and stay of recovery were granted in favour of the appellant.

---