Exemption for SEZ clearances under Notification 67/95-CE secured interim protection pending appeal.

Interim relief was granted in a dispute over the availability of Notification No. 67/95-CE for clearances to a Special Economic Zone. The Tribunal relied on its earlier stay order on the same issue, which had treated SEZ supplies as exports and noted that exports are not exempted goods for the purpose of that notification. On that prima facie view, the assessee was found entitled to protection pending final hearing, so pre-deposit of duty, interest and penalty was waived and recovery was stayed until disposal of the appeal.

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Issues: Whether pre-deposit of duty, interest and penalty should be waived and recovery stayed pending disposal of the appeal where the dispute concerned availability of exemption under Notification No. 67/95-CE for clearances to Special Economic Zone.

Analysis: The Tribunal noted that the assessee's own earlier stay order on the identical issue had granted unconditional stay. That order proceeded on the view that supplies to Special Economic Zone are treated as exports, exports are not regarded as exempted goods, and therefore Notification No. 67/95-CE did not, at least prima facie, bar the benefit claimed. Following the same approach, the Tribunal found that the present case also warranted interim protection pending final disposal of the appeal.

Conclusion: Pre-deposit was waived and recovery of duty, interest and penalty was stayed till disposal of the appeal.

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