Valuation of semi-finished goods under retail-pack rules: full pre-deposit waiver granted amid prima facie and time-bar objections.

Semi-finished goods not yet in retail packing were found to raise a strong prima facie objection to valuation under section 4A at the interim stage, because further processing was still required before sale in packed form. The time-bar objection was also treated as relevant for interim relief. On these facts, insistence on pre-deposit of the demanded duty, penalty and interest was not justified, and full waiver of pre-deposit was granted with recovery stayed until disposal of the appeal.

---

---

Issues: Whether full waiver of pre-deposit was warranted in a valuation dispute involving semi-finished goods proposed to be assessed under section 4A, along with the attendant demand of duty, penalty and interest.

Analysis: The goods were found to be in a semi-finished condition and not in a packed state. The stated processing chain showed that further operations were still required before the goods could be placed for sale in retail packing. On that basis, the case disclosed a strong prima facie objection to valuation under section 4A at that stage. The time-bar objection was also considered relevant at the interim stage. In these circumstances, insistence on pre-deposit of the demanded duty, penalty and interest was not justified.

Conclusion: Full waiver of pre-deposit was granted and recovery was stayed until disposal of the appeal.

---