Exemption eligibility for imported coal justified waiver of pre-deposit and stay of recovery pending Larger Bench decision.

Pending a Larger Bench reference on eligibility to exemption under Notification No. 12/2012-Cus for imported coal, the Tribunal treated the issue as unsettled and granted waiver of pre-deposit. On that basis, recovery of the confirmed demand was stayed until disposal of the appeal, following the approach that pre-deposit need not be insisted upon while the same exemption question remains sub judice before the Larger Bench.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery pending disposal of the appeal, in view of the dispute regarding eligibility to the benefit of Notification No. 12/2012-Cus dated 17.03.2012 for imported coal.

Analysis: The demand arose from denial of exemption under Notification No. 12/2012-Cus for coal imports. The issue had already been referred to a Larger Bench of the Tribunal, and a coordinate Bench had granted unconditional waiver on the same issue, following the convention that pre-deposit need not be insisted upon while the reference remains pending.

Conclusion: The application for waiver of pre-deposit was allowed and recovery of the confirmed amounts was stayed till disposal of the appeal.

Final Conclusion: Interim relief was granted to the appellant pending decision of the Larger Bench on the exemption dispute.

Ratio Decidendi: When the very issue of exemption eligibility is pending before a Larger Bench, pre-deposit may be waived and recovery stayed till the appeal is finally decided.

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