Medicated soap classification dispute supported prima facie waiver of pre-deposit and stay of recovery.

Tetmosol Soap was treated as a medicated soap used for treatment of scabies, and its bathing-only use, packaging and literature supported medicinal characteristics and cautions. On that material, a prima facie view was taken that classification under sub-heading 3401.11 was more appropriate than the department's proposed sub-heading 3401.19. A prima facie case was therefore made out for waiver of pre-deposit and stay of recovery, and relief was granted.

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Issues: Whether the applicants had made out a prima facie case for waiver of pre-deposit and stay of recovery in view of the classification dispute as to whether Tetmosol Soap fell under sub-heading 3401.11 as a medicated soap or under sub-heading 3401.19.

Analysis: The product was undisputedly a medicated soap used for treatment of scabies, and its mode of use was only during bathing. The packaging and literature also indicated medicinal characteristics and cautions consistent with a medicated product. On this material, a prima facie view was taken that the claimed classification under sub-heading 3401.11 was more appropriate than the department's proposed classification under sub-heading 3401.19.

Conclusion: The applicants were found to have made out a prima facie case for waiver of pre-deposit and stay of recovery, and the relief was granted.

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