Pre-deposit waiver for depot-clearance duty dispute granted on prima facie reliance on Board circular guidance

Where duty was paid at factory clearance on the prevalent price basis for depot removals, a Board circular clarified that assessments need not remain provisional until the actual sale price at the other place of removal is known. It further indicated that duty may be declared and paid on the price prevailing at the other place of removal on the date of factory clearance. On that basis, the applicants showed a prima facie case for interim relief and obtained waiver of pre-deposit of duty and penalty pending disposal of the appeal.

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Issues: Whether, on the facts and the Board circular relied upon, the applicants were entitled to waiver of pre-deposit of duty and penalty pending disposal of the appeal.

Analysis: The applicants were paying duty at the time of clearance from the factory on the prevalent price basis corresponding to the depot clearances, and the Board circular stated that assessments need not be kept provisional till the actual sale price at the other place of removal becomes known. The circular further indicated that duty could be declared and paid on the price prevailing at such other place of removal on the date the goods were cleared from the factory. On that basis, the application disclosed a prima facie case for interim relief.

Conclusion: The applicants were entitled to waiver of pre-deposit of duty and penalty for hearing of the appeal.

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