Small scale exemption for compounded rubber supported by amended notification and trade notice; stay of duty recovery granted.

Amended exemption wording deleting tariff heading 4005.00 from the excluded category was treated as supporting small scale exemption for compounded rubber from 31-3-1989. The trade notice was read consistently with that view, stating that compounded rubber became eligible for exemption from that date. Reliance on other amending notifications to treat the deletion as a rectifiable mistake was found not prima facie tenable because those notifications were not directly connected with the inclusion or deletion of item 4005. On that basis, a prima facie case was found and stay of recovery, with waiver of recovery of the duty amount, was granted on furnishing a personal bond.

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Issues: Whether, for purposes of interim relief, compounded rubber remained eligible for small scale exemption under the amended exemption notification and whether the applicants were entitled to stay and waiver of recovery of the duty demanded.

Analysis: The amended notification deleting tariff heading 4005.00 from the excluded category was read as supporting exemption from 31-3-1989. The departmental trade notice also stated that compounded rubber was eligible for exemption from that date. The suggested reliance on other amending notifications as rectifying any mistake in the amendment was found not prima facie tenable, as those notifications had no relevant connection with the deletion or inclusion of item 4005.

Conclusion: A prima facie case existed in favour of the applicants. Stay of recovery and waiver of recovery of the duty amount were granted on furnishing a personal bond for the duty amount within the stipulated time.

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