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Application for stay of duty demand on finalization of provisional assessments, validity of certificates for exemption under customs notifications, jurisdiction of certificate-issuing authority, adjustment of duty amount under Section 18 of Customs Act, past practice of granting exemption, waiver of pre-deposit of duty. Analysis: The case involves an application for a stay of duty demand amounting to Rs. 3,30,38,532.00 on finalization of earlier provisional assessments by the Assistant Collector of Customs, which was upheld by the Collector of Customs (Appeals). The applicants, engaged in cardiac and cardio-vascular research, imported medical instruments for research claiming exemption under specific notifications. The dispute arose when a show cause notice alleged that the imported medical equipment was not purely for scientific research and that the applicants were engaged in patient care for commercial purposes. The applicants argued that they satisfied the conditions for exemption as per guidelines issued by the Ministry of Science & Technology, and cited legal precedents to support their position that customs authorities cannot question the validity of certificates issued by competent authorities for obtaining exemptions. The Customs authorities, on the other hand, contended that the Ministry of Health was the administratively concerned authority for medical research institutes, and the certificate issued by the Ministry of Science & Technology was not sufficient for claiming exemption. They also raised doubts about the charitable nature of the applicants' activities and the intended use of the imported equipment. The Customs authorities justified the higher demand amount based on the finalization of provisional assessments under Section 18 of the Customs Act, which allows for adjustment of duty amounts. The Tribunal analyzed the notifications governing the exemption requirements and the administrative allocation of research-related functions to different ministries. It concluded that the certificate issued by the Ministry of Science & Technology might not be acceptable for claiming exemption under the specific notifications due to the administrative allocation of medical research to the Ministry of Health. The Tribunal also upheld the Collector (Appeals) findings regarding the adjustment of duty amount under Section 18 of the Customs Act, stating that there was no infirmity in the decision. Regarding the past practice of granting exemption and the waiver of pre-deposit of duty, the Tribunal distinguished the present case from previous decisions, emphasizing that the authorities have the discretion to rectify errors in granting exemptions contrary to law. Ultimately, the Tribunal held that no prima facie case was made out for a total waiver of pre-deposit of duty and ordered the deposit of a specified amount for hearing the appeal on merits, with the pre-deposit of the balance duty amount being dispensed with pending the appeal's disposal.
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