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Issues:
1. Interpretation of Notification No. 51/96-Cus regarding benefit eligibility for importers. 2. Applicability of Tribunal ruling in Mekastar Telematics Ltd. case. 3. Binding effect of Board Circular No. 27/2003-Cus on authorities. 4. Decision on granting stay application based on prima facie case. Issue 1 - Interpretation of Notification No. 51/96-Cus: The case involved the interpretation of Notification No. 51/96-Cus, which provided benefits for importers supplying to specific institutions. The appellant claimed the benefit under this notification for importing items for various public-funded institutions. However, the Revenue contended that the appellant was not eligible as they were not specifically named as main importers in the notification. The Revenue relied on a Tribunal ruling in the Mekastar Telematics Ltd. case, which held that an amendment to the notification was not clarificatory, thus limiting the benefit only to named importers. The appellant argued that a Board Circular clarified the applicability of the amendment, citing the binding effect of such circulars based on a Supreme Court judgment in the Paper Products case. Issue 2 - Applicability of Tribunal ruling and Board Circular: The learned SDR argued that the imports in question were from 1999, making the earlier Tribunal ruling applicable and rendering the appellant ineligible for the notification benefit. However, the Tribunal noted that the subsequent Board Circular had a binding effect on the authorities. The appellant's counsel pointed out that the Commissioner had already decided in favor of importers in similar cases, supported by evidence in the paper books. The Tribunal acknowledged that in a previous case involving the appellant, the benefit had been granted, indicating a favorable precedent. Consequently, the issue was decided in favor of the appellant, granting an unconditional stay on recovery pending appeal disposal. Issue 3 - Binding effect of Board Circular: The Tribunal recognized the binding effect of the Board Circular No. 27/2003-Cus on the authorities, as evidenced by previous decisions in favor of importers based on the circular's clarification. This acknowledgment supported the appellant's argument for eligibility under the notification, emphasizing the importance of administrative guidelines in interpreting legal provisions. Issue 4 - Decision on stay application: Based on the prima facie case presented by the appellant in their favor regarding the notification benefit, the Tribunal granted an unconditional stay on recovery until the appeal's final disposition. Acknowledging the substantial amounts involved, the Tribunal prioritized an expedited hearing scheduled for 7th March 2006, ensuring timely resolution of the matter.
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