ORDER
C.N.B. Nair, Member (T)
1. The duty demand is in regard to cut tobacco supplied to an export processing unit. The supply was in terms of domestic procurement certificate issued by the procuring unit. That certificate had also the specific approval of appraiser of Customs. The duty demand is in regard to additional duty of excise (surcharge) @ Rs. 5/-.
2. The submission of the appellant is that since it made the supply under a certificate duly approved by a Customs Officer and the certificate specifically stated that all tax liabilities including the surcharge, remains transferred to the buyer and a bond had been executed for that purpose, no demand could be raised against the supplier.
3. A perusal of the certificate in question shows that the surcharge now demanded is one of the items specifically mentioned therein. Prima facie, the appellant is right in its contention that, in terms of the bond executed by the buyer, liability, if any, remains shifted to the buyer and a demand against the supplier is illegal and unjustified.
4. In the result, the stay application is allowed and requirement of pre-deposit waived.
5. Appeal to come up in its due course for hearing.
(Dictated and pronounced in the open court)