Prima facie classification as power driven pump sets justified waiver of pre-deposit and stay at the interim stage.

At the stay stage, the Tribunal accepted that the applicants had shown a strong prima facie case for waiver of pre-deposit of duty and penalty. The goods were manufactured as I.C. engines and cleared with pumps as power driven pump sets, and the Board's circular together with cited precedent supported classification under Heading 84.13 and the claimed exemption. On that basis, the Tribunal granted stay and waived pre-deposit, treating the exemption claim as arguable for interim relief purposes.

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Issues: Whether the applicants had made out a prima facie case for waiver of pre-deposit of duty and penalty on the ground that the goods cleared were classifiable as power driven pump sets and covered by the exemption notification.

Analysis: The applicants manufactured I.C. engines and procured pumps from the market, which were cleared together as power driven pump sets. The Board's circular and the cited precedent supported the view that such goods could be treated as power driven pump sets under Heading 84.13. On that basis, the Tribunal found that the applicants had a strong prima facie case.

Conclusion: The pre-deposit of duty and penalty was waived and stay was granted in favour of the applicants.

Final Conclusion: Interim relief was granted on the footing that the cleared goods were prima facie classifiable as power driven pump sets, making the exemption claim arguable at the stay stage.

Ratio Decidendi: At the stay stage, where the cleared goods are prima facie classifiable under the claimed tariff heading and supported by the exemption position, waiver of pre-deposit may be granted.

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