Prima facie tariff classification under Heading 73.23 justified waiver of pre-deposit in a kitchen cabinet basket dispute.

In a classification dispute over pull out baskets used in kitchen cabinets, the article notes that the goods were examined against the tariff description and HSN Explanatory Notes. They were found prima facie to be articles or parts of household kitchen articles of iron and steel under Heading 73.23, rather than goods falling under Heading 94.03 as claimed by the Revenue. On that basis, the applicants were held to have a strong prima facie case, and the full pre-deposit of the disputed duty was waived for hearing of the appeal.

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Issues: Whether the applicants had made out a prima facie case for waiver of pre-deposit in a classification dispute concerning pull out baskets used in kitchen cabinets.

Analysis: The disputed goods were considered in the context of the HSN Explanatory Notes and the tariff description. The goods were found prima facie to be articles or parts of household kitchen articles of iron and steel covered by Heading 73.23, whereas the Revenue had classified them under Heading 94.03. On the facts, the applicants were held to have a strong prima facie case.

Conclusion: Pre-deposit of the entire duty demand was waived for hearing of the appeal.

Ratio Decidendi: In a classification dispute, where the assessee shows a strong prima facie case on the tariff heading supported by the explanatory notes, pre-deposit of the disputed duty may be waived.

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