Bonded fabric classification: prima facie Chapter 55 treatment supported waiver of pre-deposit and stay of recovery.

Imported bonded fabrics were examined at the stay stage on a prima facie basis for classification under Chapter 55. The Tribunal accepted that Chapter 55 covers woven fabrics with more than one variety of yarn, while the goods described as two fabrics bonded together with adhesive appeared, on the material then available, to fit the assessee's claimed classification. On that basis, the Tribunal granted interim protection by waiving pre-deposit of the adjudged dues and staying recovery until disposal of the appeal.

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Issues: Whether the imported bonded fabrics were prima facie classifiable as woven fabrics under Chapter 55 or under the classification adopted by the department, and whether pre-deposit of the adjudged dues should be waived pending appeal.

Analysis: The goods were described as two different fabrics bonded together with adhesive material. On the material available at the stay stage, the Tribunal accepted prima facie that Chapter 55 covered woven fabrics with more than one variety of yarn, whereas the impugned goods appeared to be separate fabrics bound together, making the assessee's claimed classification appear appropriate. This formed the basis for grant of interim protection.

Outcome: Pre-deposit of the dues was waived and recovery was stayed till disposal of the appeal.

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