Customs pre-deposit waiver partly granted in exemption dispute; limited deposits ordered and recovery stayed pending appeal.

Customs appeals concerning exemption under Notification No. 40/2006-Cus. and the retrospective amendment in Notification No. 17/2009-Cus. were considered for waiver of pre-deposit. The Tribunal assessed each appellant's duty position and held that only partial waiver was justified, directing specified appellants to deposit the amounts stated in the order within eight weeks as a condition for hearing. Recovery of the balance dues was stayed pending disposal of the appeals.

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Issues: Whether the applicants were entitled to waiver of pre-deposit in the connected customs appeals, and what amount, if any, should be directed to be deposited as a condition for hearing.

Analysis: The appeals arose from a common controversy concerning exemption under Notification No. 40/2006-Cus. and the effect of the retrospective amendment introduced by Notification No. 17/2009-Customs. The applicants sought waiver on the basis that the demand was premised on a later clarification of the notification and that the appeals should not be defeated by full pre-deposit. The Tribunal examined the tabulated duty position of each appellant and assessed the extent to which pre-deposit should be directed in the individual cases. It also granted stay of recovery in respect of the balance amounts pending disposal of the appeals.

Conclusion: Partial waiver of pre-deposit was granted. Only the specified appellants were directed to deposit the amounts indicated in the order within eight weeks, and the balance dues were stayed until disposal of the appeals.

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