Prima facie tariff classification dispute over flexible plastic corrugated material justified waiver of pre-deposit and stay of recovery.

Classification of flexible plastic corrugated material manufactured by extrusion remained arguable on a prima facie view, because the product's fluted layers, the earlier Tribunal view in the assessee's own matter, and the relevant Chapter 39 notes did not conclusively displace the assessee's claim that it was not to be treated as a sheet for tariff purposes. The assessee therefore obtained waiver of pre-deposit and stay of recovery of duty pending disposal of the appeal, with the exemption and classification dispute left open for final determination.

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Issues: Whether the assessee was entitled to waiver of pre-deposit and stay of recovery pending the appeal on classification of the product and exemption eligibility.

Analysis: The product was a flexible plastic corrugated material manufactured by extrusion. The dispute turned on whether it was to be treated as sheets or as a profile shape for tariff purposes, and whether the earlier Tribunal view and the Chapter 39 notes displaced the assessee's claim. On a prima facie assessment, the prior decision in the assessee's own case, the manufacturing process, and the presence of fluting between the layers indicated that the classification issue remained arguable and the earlier view was not shown to be inapplicable merely because of the tariff change.

Conclusion: The assessee was granted waiver of deposit and recovery of duty was stayed pending disposal of the appeal.

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