Concessional duty exemption requires use in registered premises; non-compliance defeated complete waiver of pre-deposit.

Concessional duty under the exemption notification was available only if the imported parts were used in the registered premises in accordance with the notification conditions. Because the record showed clearance of the goods to another unit at Una that was not registered for the concessional rate, compliance with the exemption conditions was not established. On that basis, a prima facie case for complete waiver of pre-deposit of duty, interest and penalty was not made out, and total waiver was declined. The appellant was required to deposit Rs. 4,00,000 within the stipulated time, while waiver of the balance was granted pending disposal of the appeal.

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Issues: Whether the appellant had made out a prima facie case for complete waiver of pre-deposit of duty, interest and penalty in relation to clearance of imported parts under the concessional duty notification.

Analysis: The imported goods were required to be used in the registered premises in accordance with the notification conditions. The record showed that the goods had been sent to another unit at Una, which was not registered for availment of the concessional rate. On that basis, the appellant had not demonstrated compliance with the conditions governing the exemption and therefore had not established a case for total waiver of pre-deposit.

Conclusion: Complete waiver was declined and the appellant was directed to deposit Rs. 4,00,000 within the stipulated time, with waiver of the balance amount of duty, interest and penalty pending disposal of the appeal.

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