Manufacture and industrial use supported waiver of pre-deposit and stay of recovery in an import dispute.

Imported parts received in packaged form were opened, tested, repacked, relabelled and marked with the appellant's own logo before being supplied for warranty obligations, spares or replacement, so the activities were treated as manufacture and the imports as industrial use. On that basis, the packaged commodities objection was found inapplicable at the interim stage. The demand was also noted to be beyond the normal period of limitation, which strengthened the appellant's case. A prima facie case was therefore made out for waiver of pre-deposit and for stay of recovery of the entire dues pending appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery on the ground that the imported goods were used for industrial purposes after testing, repacking, relabelling and affixing the appellant's own logo, and whether the demand was also supported by a limitation objection.

Analysis: The imported parts and components were received in packaged form with the supplier's logo, but they were not sold as such. The goods were opened, tested, repacked, relabelled and affixed with the appellant's own logo before being supplied for warranty obligations, spares or replacement. On these facts, the activities were treated as amounting to manufacture, and the imports were viewed as for industrial use, taking the case outside the exemption objection raised under the packaged commodities regime. The tribunal also noticed that the demand was beyond the normal period of limitation, which further supported the appellant's case at the interim stage.

Conclusion: The appellant made out a prima facie case for waiver of pre-deposit and stay of recovery of the entire dues during the pendency of the appeal.

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