Pre-deposit waiver for deemed complete TVs granted on strong prima facie case under tariff interpretation and MRP-based clearance.

The Tribunal found a strong prima facie case for waiver of pre-deposit where the dispute concerned whether cleared parts were to be treated as complete coloured television sets under Rule 2(a) of the Interpretative Rules and whether MRP-based clearance under Notification No. 5/01 applied. It noted that the Revenue itself proceeded on the basis that the parts were deemed complete TVs, while the MRP was affixed by the original equipment manufacturer. Relying on a cited Supreme Court decision and its earlier stay order on similar facts, the Tribunal waived the entire pre-deposit of duty and penalty for hearing of the appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit of duty and penalty pending appeal.

Analysis: The dispute turned on whether the goods were to be treated as complete coloured television sets under Rule 2(a) of the Interpretative Rules of the Tariff and whether the benefit relating to MRP-based clearance under Notification No. 5/01 was available. The Tribunal noted that the Revenue itself was proceeding on the basis that the appellant cleared parts which were treated as complete TVs by application of the interpretative rule, while the MRP was affixed by the original equipment manufacturer. In view of the cited Supreme Court decision and the Tribunal's earlier stay order on similar facts, the appellant was found to have a strong prima facie case.

Conclusion: The pre-deposit of the entire duty and penalty was waived for hearing of the appeal.

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