2007 (1) TMI 363 - AT - Customs

Summary

Issues:
1. Requirement of pre-deposit for availing waiver and staying recovery.
2. Eligibility for exemption under Notification No. 48/2004 C.E.
3. Recovery of customs duty based on subcontractor status in international competitive bidding.
4. Commissioner's delay in filing report and request for adjournment.

Analysis:

1. The appellant was required to pre-deposit a substantial amount to avail the benefit of waiver and stay recovery. The Counsel argued that the appellant was a job worker for a PSU unit participating in International Competitive Bidding, making them eligible for exemption under Notification No. 48/2004 C.E. The authorities sought to recover customs duty based on the appellant not being the bidder or listed as a subcontractor in the bidding process.

2. The Counsel referenced previous judgments, including AKZO Noble Coating P. Ltd. v. CCE, to support the appellant's case. An interim stay was granted, indicating a prima facie favorable nature of the case. The Commissioner was directed to provide a report, but despite reminders, the report was not submitted. The Commissioner was given additional time to prepare a reply considering the citations in favor of the assessee.

3. The absence of conditions in the Notification restricting the PSU from assigning job work to the appellant and the lack of a requirement for subcontractors to be registered in International Competitive Bidding supported the appellant's position. The cited cases were deemed applicable, leading to the confirmation of interim stay. The stay application was allowed, preventing recovery until the appeal's final disposal due to the significant amount involved.

4. The judgment concluded with the confirmation of the interim stay and scheduled the appeal for final hearing on a specified date. The decision was pronounced and dictated in open court, emphasizing the temporary relief granted to the appellant pending the appeal's resolution.