Classification dispute over composite containers and paper drums led to waiver of pre-deposit and stay pending Larger Bench reference.

A classification dispute concerning composite containers and plain paper drums under CETA Sub-heading 4819.12 was found to involve conflicting Tribunal decisions, including in the assessee's own cases on composite and printed composite containers. As the authorities had also treated paper drums as akin to printed carton boxes and cases, the matter was considered fit for reference to a Larger Bench. Pending that reference and the appeal, pre-deposit of the duty demand was waived and recovery was stayed.

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Issues: Whether pre-deposit of the duty demanded was required to be made pending appeal in a classification dispute concerning composite containers and plain paper drums, in view of conflicting Tribunal decisions.

Analysis: The duty demand arose from classification of the disputed goods under CETA Sub-heading 4819.12. The record noted conflicting Tribunal decisions in the assessee's own cases on the classification of composite containers and printed composite containers, and the authorities below had also treated paper drums as akin to printed carton boxes and cases. In view of this conflict, the case was considered fit for reference to a Larger Bench.

Outcome: Pre-deposit of duty was waived and recovery was stayed pending the appeal, and the papers were directed to be placed before the President for reference to a Larger Bench.

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