Customs duty timing dispute led to ad-interim stay of show cause proceedings over a later countervailing duty notification.

The petition concerned whether further proceedings under a show cause notice should be stayed by ad-interim relief. The petitioner argued that the customs charging scheme and the rule fixing the applicable rate for goods cleared from a warehouse showed the goods had been imported before the notified countervailing duty came into force, so the demand rested on a later notification. The Court accepted the request for interim protection and stayed further proceedings under the impugned show cause notice.

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Issues: Whether further proceedings pursuant to the impugned show cause notice should be stayed by way of ad-interim relief.

Analysis: The petitioner relied on the statutory scheme governing levy and collection of customs duty, including the charging provision and the rule fixing the applicable rate for goods cleared from a warehouse, to contend that the goods had been imported before the notified countervailing duty came into force. The request for interim protection was considered in light of the contention that the demand proceeded on a later notification and that the show cause notice was substantially conclusive in nature.

Conclusion: Ad-interim relief was granted and further proceedings pursuant to the impugned show cause notice were stayed.

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