Tariff classification and pre-deposit relief turn on Chapter 85 treatment of electromagnets, not Heading 90.33.

Tariff classification under Chapter 90 was not shown at the prima facie stage where the tariff notes required goods falling within Chapters 84 or 85 to remain classified in those headings, and the HSN notes indicated that an electromagnet remains in Chapter 85. On that basis, classification under Heading 90.33 was not established. For purposes of interim relief, the applicants therefore did not make out a case for complete waiver of pre-deposit; partial deposit was required, and balance duty was stayed subject to compliance.

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Issues: Whether the applicants had made out a prima facie case for complete waiver of pre-deposit in respect of the duty confirmed against them, and whether the goods were prima facie classifiable under Heading 90.33 or Heading 85.05.

Analysis: Note 2(a) of Section XVI of the tariff requires goods included in the headings of Chapters 84 or 85 to be classified in their respective headings. Note 2(a) to Chapter 90 similarly directs that parts and accessories which are goods included in the headings of Chapters 84, 85 or 91 are to be classified in their respective headings, subject to the stated exclusions. The HSN Explanatory Notes for Chapter 90 indicate that an electromagnet remains classified in Chapter 85. On that basis, the claimed classification under Heading 90.33 was not established at the prima facie stage.

Conclusion: The applicants were not entitled to complete waiver of pre-deposit. They were directed to deposit Rs. 1.5 lakhs, and on compliance the balance duty was waived and stayed during the pendency of the appeal.

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