Interim stay on duty recovery granted in a conveyor-parts classification dispute, subject to conditional deposit.

Classification of slats used as conveyor parts was treated as only a prima facie issue at the interim stage, with Heading 84.31 appearing applicable under Section Note 2(a) to Section XVI and the assessee's claim under Heading 84.28 not considered convincing then. On recovery, the Tribunal accepted that the later modification under Section 35E supported objection to immediate recovery and granted conditional stay. The assessee was required to deposit Rs. 1.5 lakh within two months; on such deposit, the balance duty was waived for stay purposes, recovery was stayed, and the detention order was to stand vacated.

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Issues: Whether the assessee was entitled to interim protection against recovery of duty and detention of goods pending the appeal, and whether a prima facie case was made out on the classification dispute.

Analysis: The duty demand arose from the classification of slats used as conveyor parts. The Tribunal recorded only a prima facie view on classification, noting that the assessee's claim under Heading 84.28 was not convincing at that stage and that Heading 84.31 appeared applicable in light of Section Note 2(a) to Section XVI. On the question of recovery, the Tribunal found support for the assessee's objection to recovery based on a later modification under Section 35E of the Act and granted interim protection on a conditional deposit.

Outcome: The assessee was directed to deposit Rs. 1.5 lakh within two months, and on such deposit the remaining duty was waived for the purpose of stay and recovery was stayed; the detention order was to stand vacated thereafter.

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