Exemption for indigenous procurement and interim waiver supported where the customs certificate requirement was not expressly incorporated.

Exemption under Serial No. 91 of Notification No. 6/2006-C.E. was analysed in the context of indigenous procurement, with the certification requirement in Notification No. 21/2002-Cus. found not to be expressly incorporated for such supplies. The supplier showed that the goods were obtained through International Competitive Bidding and that a Project Authority Certificate had been issued. The absence of evidence that similarly placed manufacturers were being proceeded against, together with the risk of discriminatory treatment if the customs certificate were insisted upon for domestic procurement, supported interim relief. Complete waiver of the confirmed dues and penalties was granted, with recovery stayed until disposal of the appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of recovery of the confirmed demand and penalty, and whether the exemption under Serial No. 91 of Notification No. 6/2006-C.E. could be denied for want of the certificate contemplated under Notification No. 21/2002-Cus. when the goods were procured indigenously.

Analysis: The exemption condition in Notification No. 6/2006-C.E. did not expressly incorporate the certification requirement of Notification No. 21/2002-Cus. for indigenous procurement. The appellant had shown that the goods were supplied under International Competitive Bidding and that a Project Authority Certificate had been issued. The absence of confirmation that similarly placed manufacturers had been proceeded against, coupled with the possibility of discriminatory treatment if the demanded certificate was insisted upon for domestic supplies, supported a prima facie case in favour of interim protection.

Conclusion: The appellant was entitled to complete waiver of the confirmed dues and penalties, and stay against recovery was granted till disposal of the appeal.

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