Prima facie test in classification disputes: waiver of pre-deposit refused, but bank guarantee protected during appeal.

In a classification dispute over aluminium composite panels, the Tribunal applied the prima facie test for waiver of pre-deposit by examining the test report, relevant chapter notes and the record. It found that the materials did not establish a strong enough prima facie case for complete waiver, so the waiver request was declined. However, the existing bank guarantee was treated as adequate security during the appeal, and Customs was restrained from enforcing or encashing it while the appeal remained pending.

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Issues: Whether the applicant made out a strong prima facie case for waiver of pre-deposit in a classification dispute concerning aluminium composite panels, and whether interim protection against enforcement of the bank guarantee was warranted pending appeal.

Analysis: The application arose from a classification dispute between competing tariff headings. The request for waiver was considered in light of the test report, the relevant chapter notes, and the evidence on record. The Tribunal found that, despite the plea of identical imports being assessed differently elsewhere, the materials did not establish a strong prima facie case for complete waiver. At the same time, the existing bank guarantee was taken as sufficient security during the pendency of the appeal.

Outcome: Waiver of pre-deposit was declined, but the applicants were directed to keep the bank guarantee alive and the Customs authorities were restrained from enforcing or encashing it during the appeal.

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