Paper button bag classification treated as an envelope, supporting prima facie stay and waiver of pre-deposit.

A paper "button bag" supplied with readymade garments was treated, on a prima facie basis, as a small paper envelope used to carry spare buttons and not as an article of paper of the kind used in offices, shops or similar establishments. That classification view supported the assessee's stay request at the interim stage, because it showed a prima facie case against the demand. Waiver of pre-deposit and stay of recovery were therefore granted pending further proceedings.

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Issues: Whether the paper "button bag" used to carry spare buttons along with readymade garments was classifiable as an envelope of paper or as an article of paper of a kind used in offices, shops or the like, and whether the assessee had made out a case for waiver of pre-deposit and stay of recovery.

Analysis: The item was found to be a small paper envelope used as a container for spare buttons supplied with garments. On that prima facie view, it did not answer the description of an article of paper of the kind used in offices, shops or similar establishments. The assessee therefore established a prima facie case at the stage of stay.

Conclusion: The item was treated as an envelope of paper for the purpose of interim consideration, and waiver of pre-deposit with stay of recovery was granted in favour of the assessee.

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