2009 (3) TMI 818 - AT - Customs

Summary

Issues:
Import of computers and servers under Notification No. 51/96-Cus., fulfillment of conditions, investigation by Customs Authorities, issuance of Essentiality Certificate, compliance with Guidelines, waiver of pre-deposit of dues, stay application.

Analysis:

1. Import under Notification No. 51/96-Cus.:
The applicant imported 200 Computers and two Servers under Notification No. 51/96-Cus., dated 23-7-1996, claiming benefits. The applicant, a College affiliated to the University of Bangalore, obtained an Essentiality Certificate from the Registrar of Bangalore University as required by the Notification to clear the goods.

2. Fulfillment of Conditions and Investigation:
Customs Authorities conducted investigations at the applicant's premises, alleging non-fulfillment of conditions of the Notification and Guidelines related to the implementation. The Departmental Representative highlighted that the institution did not offer research programs, thus failing to meet the conditions specified in the Guidelines.

3. Essentiality Certificate and Prima Facie Case:
The Registrar of the University certified that the imported goods were necessary for research purposes, supporting the applicant's claim. The Tribunal found that the applicant had prima facie established a strong case on merits based on the Essentiality Certificate. The Tribunal decided to waive the pre-deposit of dues demanded in the impugned order and granted a stay on any coercive measures by Revenue until the appeal was decided.

4. Decision and Stay Order:
The Tribunal ordered a complete waiver of pre-deposit, allowing the stay application. It directed that no coercive measures should be taken by Revenue during the appeal process, and the stay order would remain in force even after 180 days. The Tribunal reserved the examination of other issues raised by the Department for the final hearing.

In conclusion, the Tribunal granted relief to the applicant based on the Essentiality Certificate and the prima facie establishment of a strong case on merits. The waiver of pre-deposit and the stay order were issued to ensure fairness and protection for the appellant during the appeal process.