Strict compliance with exemption notification conditions prevents waiver of pre-deposit where the required certificate was never produced.

An exemption notification requiring a pre-clearance certificate from the United Nations or an international organisation was held to demand strict compliance as a condition precedent. Letters from the World Bank to RITES were not a valid substitute for the specific certificate mandated by Notification No. 108/95, and the later amendment in Notification No. 33/98 did not change the requirement for the relevant period. On that basis, substantial compliance was rejected, complete waiver of pre-deposit was denied, and only a partial pre-deposit was ordered with stay for the balance.

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Issues: Whether the applicants were entitled to complete waiver of pre-deposit in the stay application on the basis that the conditions of Notification No. 108/95 were substantially satisfied despite non-production of the certificate required by the proviso.

Analysis: The proviso to Notification No. 108/95 required production, before clearance, of a certificate from the United Nations or an international organisation that the goods were intended for official use or for a project financed by such body and approved by the Government of India. The record showed that no such certificate had been produced. Letters from the World Bank addressed to RITES could not be treated as a substitute for the certificate specifically required by the notification. The later amendment in Notification No. 33/98 did not alter the requirement applicable during the relevant period. As the essential condition was not complied with, complete waiver of pre-deposit was not justified.

Conclusion: Complete waiver of pre-deposit was denied and a partial pre-deposit was directed, while stay was granted for the balance.

Ratio Decidendi: Where an exemption notification prescribes a specific certificate as a condition precedent, that requirement must be strictly complied with and cannot be substituted by other correspondence or by substantial compliance.

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