Zip tape classification and customs exemption dispute led to a stay on the appellate order pending appeal.

Imported goods were treated on a prima facie basis as zip tape, an independent product distinct from zipper chain formed by adding scoops or teeth, so the exemption under Notification No. 190/90-Cus was not available at that stage. The Tribunal also noted that final consideration was required on tariff classification under Heading 58.06. On that reasoning, it granted stay of operation of the lower appellate order allowing exemption until disposal of the appeal.

---

---

Issues: Whether the imported goods were zip tape or a product falling outside the scope of Notification No. 190/90-Cus, and whether the operation of the appellate order granting exemption should be stayed pending appeal.

Analysis: The Tribunal noticed that the material produced indicated that zipper tape is an independent entity and that attachment of scoops or teeth gives rise to zipper chain. On a prima facie view, the imported goods appeared to be zip tape, and the exemption granted by the lower appellate authority was not available. The matter was also observed to warrant consideration of tariff classification under Heading 58.06 at the final hearing.

Outcome: Stay of the operation of the order of the lower appellate authority was granted till disposal of the appeal.

---