ORDER
C.N.B. Nair, Member (T)
1. The petitioner seeks stay of duty demand of about Rs. 12 lakhs.
2. Heard both sides and perused the records. The duty demand is in respect of ‘Copra Handling System’ and ‘Oil Modification’ which were contracted by the appellants for establishing at Kanjicode in Kerala. Appellant paid duty on the parts of the system manufactured by him. The present order would appear to hold that the system should be seen as cleared in CKD condition. Prima facie, this finding would appear to be erroneous inasmuch as it is the case of both sides that some of the bought out items for the installation of the system were sent directly to the site at Kanjicode. If that be so, the question of establishing them first in the appellant’s factory and thereafter clearing them in CKD condition cannot arise.
3. In the above circumstances, the appellant has a strong prima facie case. The requirement for pre-deposit is waived and its recovery is stayed till disposal of the appeal.
(Order dictated and pronounced in open Court)