Stock transfer customs duty dispute: prima facie case supported waiver of pre-deposit and stay of recovery.

Additional duty of customs on stock transfers by an EOU to its own sister unit was examined for interim relief, with the Tribunal noting earlier precedent extending Notification No. 23/2003-CE to similar transfers and a departmental circular treating such transfers as DTA sales where VAT was not paid. On that basis, the appellant was found to have established a prima facie case at the stay stage, justifying waiver of pre-deposit and stay of recovery pending appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit and stay of recovery in a dispute involving additional duty of customs on stock transfer by an EOU to its own unit.

Analysis: The dispute concerned levy of additional duty of customs on goods cleared by an EOU to its own sister unit by way of stock transfer. Reliance was placed on the Tribunal's earlier view granting the benefit of Notification No. 23/2003-CE on similar stock transfers, and on the departmental circular which treated such transfers as DTA sales in the absence of VAT payment. In light of the cited Tribunal decision, the appellant was held to have established a prima facie case at the interim stage.

Conclusion: The appellant was entitled to waiver of pre-deposit and stay of recovery pending disposal of the appeal.

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