Personal penalty stay granted where only classification dispute existed and no suppression or misstatement was shown.

Waiver of pre-deposit and stay of recovery of personal penalties were granted where the goods had been cleared after disclosure to the department and the duty had already been paid under protest. The alleged basis for penalty was classification under an incorrect tariff heading, but there was no material showing suppression or misstatement by the applicants. The dispute was therefore treated as a classification issue that the department could pursue separately, and that circumstance alone did not justify personal penalty at the interim stage. Recovery of the penalties was stayed pending the appeals.

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Issues: Whether the applicants were entitled to waiver of pre-deposit and stay of recovery of the personal penalties imposed under the excise law.

Analysis: The goods had been cleared after disclosure to the department, and the entire duty involved had already been paid, though under protest. The reasoning for penalty was that the product had been declared under an incorrect tariff heading, but there was no material showing suppression or mis-statement by the applicants. In such circumstances, the objection, if any, was one of classification, which the department could pursue separately; that by itself did not justify imposition of personal penalty at the interim stage.

Conclusion: Waiver of pre-deposit was granted and recovery of the personal penalties was stayed during the pendency of the appeals.

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