2013 (9) TMI 854 - AT - Customs

Waiver of pre deposit exemption denied on the ground of non- fulfilment of conditions that proportion of vitamin pre-mixes or vitamins of prawn feed, by weight, shall not exceed the standard input output norms (SION). - Notification No.21/2002 Held that - Commissioner observed that these items are in granular/microencapsulated form but not in pellet form as mentioned in the notification. - The applicant failed to make out a prima facie case for total waiver of pre deposit of entire amount of duty - 20% of the goods were still lying with the Revenue thus the court ordered to submit 50% amount as a pre deposit on such submission rest of the duty to be waived off till the disposal of the case stay granted partly.

Summary

Issues: Application for waiver of predeposit of duty under Notification No.21/2002 for imported prawn feed.

Analysis:
The applicant filed an application seeking waiver of predeposit of duty amounting to Rs.76,02,964. The dispute arose from the denial of exemption under Notification No.21/2002 due to alleged non-fulfillment of conditions. The applicant claimed the benefit of a concessional rate of duty for importing "prawn feed" as per the notification's provisions. The key contention revolved around the interpretation of Explanation (ii) of Sl. No.56 of the notification, which specified that the proportion of vitamin pre-mixes in prawn feed should not exceed the standard input output norms (SION). The applicant argued that they had adhered to the SION norms, while the Revenue contended that the prawn feed did not match the description of "Prawn feed in pellet form" as required by the exemption notification.

The Authorized Representative highlighted that the prawn feed imported was not in pellet form as specified in the notification but was in granular/microencapsulated form. The Ld. Commissioner had previously determined that the prawn feed did not meet the pellet form criteria. The Tribunal, after considering both parties' arguments, concurred with the Ld. AR's submission. Consequently, the applicant failed to establish a prima facie case for a complete waiver of the predeposit of duty. However, acknowledging that 20% of the goods were still in the possession of the Revenue, the Tribunal directed the applicant to deposit Rs.30,00,000 within six weeks and report compliance by a specified date. Upon this deposit, the predeposit of the remaining duty amount was waived, and recovery was stayed during the appeal's pendency.

In conclusion, the Tribunal's decision balanced the interests of both parties by requiring a partial deposit from the applicant while granting relief in terms of predeposit waiver for the remaining duty amount. The judgment emphasized the importance of strict adherence to the conditions stipulated in exemption notifications to avail of concessional rates of duty, underscoring the significance of meeting the specified criteria for entitlement to such benefits.