Prima facie waiver of pre-deposit granted where customs duty on EOU-bound photocopying machines was held arguable at the interim stage.

Prima facie entitlement to waiver of pre-deposit was found where duty on imported photocopying machines, claimed under Notification No. 53/97-Cus., was disputed for use in an EOU bonded warehouse. The Tribunal accepted that the demand was arguable at the interim stage and that the cited precedent supported the view that duty would arise at the time of debonding. On that basis, recovery was stayed and the stay application was allowed.

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Issues: Whether the appellants made out a prima facie case for waiver of pre-deposit and stay of recovery in respect of duty demanded on imported photocopying machines availing exemption under Notification No. 53/97-Cus.

Analysis: The appellants relied on the exemption notification and the use of the goods in the EOU's bonded warehouse premises. The Tribunal found force in the contention that, on the material placed, the demand appeared arguable at the interim stage and that the cited precedent supported the view that such demand would arise at the time of debonding.

Conclusion: The Tribunal held that a prima facie case was made out and granted stay by allowing the stay application.

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