Brand name use on medicament packaging and limitation dispute led to partial pre-deposit waiver and stay of remaining demands.

Use of the letters "ASA" on medicament packaging was examined for Chapter 30 classification, with the central issue being whether the letters operated only as an abbreviation or as a brand name for patent or proprietary medicaments. The merits challenge was regarded as arguable, but the assessee made a strong prima facie showing that the extended period of limitation was unsustainable because the classification list and label had already disclosed the packaging particulars to the department. On that basis, partial waiver of pre-deposit was granted, with a deposit required only toward the demand within the normal period and the balance duty and penalties stayed.

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Issues: Whether the use of the letters "ASA" on the medicament packaging constituted a brand name for classification under Chapter 30, whether the demand for the extended period of limitation was sustainable, and whether waiver of pre-deposit should be granted in whole or in part.

Analysis: The classification dispute turned on whether the goods were patent or proprietary medicaments and whether the letters "ASA" were used merely as an abbreviation or as a brand name within Note 2 to Chapter 30. The challenge on merits was found arguable, but the assessee established a strong prima facie case on limitation because the classification list and label had already disclosed the packaging particulars to the department. On that basis, the demand raised for the extended period was found prima facie untenable, while the demand within the normal period and the connected penalty required limited deposit as a condition for waiver of the balance.

Outcome: Partial waiver of pre-deposit was granted, subject to deposit of Rs. 4 lakhs towards the demand within the normal period, and recovery of the remaining duty and penalties, including the penalty under Rule 209A, was stayed.

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