Prima facie valuation disputes justified only partial pre-deposit relief, with full waiver refused pending appeal.

On a prima facie review of valuation disputes concerning the PTA plant, paraxylene plant, third-list items and know-how fees, arguable questions were found on the valuation methodology, alleged departure from the notice and denial of opportunity. Those issues supported interim protection, but the material was not sufficient to justify a full waiver of pre-deposit at the appeal stage. Complete waiver was therefore refused, while partial relief was granted by directing a deposit and staying recovery of the balance on compliance.

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Issues: Whether the appellant was entitled to complete waiver of pre-deposit of the customs duty demand pending appeal.

Analysis: The application was examined on a prima facie basis with reference to the valuation disputes raised in relation to the PTA plant, the paraxylene plant, the third-list items and the know-how fees. The disputed valuation methodology, the alleged departure from the notice, and the contention of denial of opportunity were found to raise arguable questions. At the same time, the material did not justify dispensing with the entire pre-deposit at the interim stage.

Conclusion: Complete waiver of pre-deposit was refused and partial relief was granted by directing deposit of Rs. 14 crores, with waiver of the balance deposit and stay of recovery upon compliance.

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