Pre-deposit waiver denied in customs dispute where export obligation under advance licence exemption was not fulfilled.

Waiver of pre-deposit was refused in a customs appeal where exemption under an advance licence notification had been claimed but the export obligation was not fulfilled within the stipulated time. The appellant had already ed liability to pay the foregone customs duty with interest before the foreign trade authority, and the confirmed demand was treated as justified at the stay stage. The appellant was directed to make the required deposit within the time fixed, failing which the appeal would stand dismissed for non-compliance.

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Issues: Whether waiver of pre-deposit should be granted in an appeal against confirmation of customs duty demand arising from non-fulfilment of the export obligation under the advance licence exemption notification.

Analysis: The appellant had availed exemption under Notification No. 93/2004-Cus. subject to discharge of export obligation within the stipulated time. It was admitted that the export obligation had not been fulfilled, and liability to pay the foregone customs duty with interest had already been acknowledged before the appellate foreign trade authority. In these circumstances, the demand confirmed by the authorities below was treated as justified for the purpose of the stay application.

Conclusion: Waiver of pre-deposit was declined and the appellant was directed to deposit Rs. 3,00,000 within the stipulated time, failing which the appeal would stand dismissed for non-compliance.

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