Interim classification dispute led to partial pre-deposit waiver and stay of recovery pending final hearing.

At the interim stage of a classification dispute, the tribunal held that the proper classification could not be finally determined on a prima facie basis and left that to final hearing. Partial waiver of pre-deposit was granted on deposit of the specified sum within eight weeks, with waiver of the balance duty, interest and penalty and stay of recovery pending appeal; non-compliance would vacate the stay and result in dismissal of the appeal without further notice.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay in respect of the demand arising from classification of the goods at the interim stage.

Analysis: The classification dispute could not be finally assessed on a prima facie basis at the stay stage. The appropriate classification was left to be decided at the time of final hearing.

Outcome: Partial waiver of pre-deposit was granted on deposit of Rs. 1,00,000 within eight weeks, with waiver of the balance duty, interest and penalty and stay of recovery pending appeal; failure to comply would vacate the stay and lead to dismissal of the appeal without further notice.

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