Temperature-control classification under Chapter 90.32 and prima facie limitation rejection led to partial pre-deposit and stay.

A guest room central system with a temperature control feature was examined for classification between Chapter Heading 85.37 and Chapter Heading 90.32, with a prima facie view that attachment of a thermostat made temperature control its principal function and supported classification under Chapter Heading 90.32. The limitation plea was also found, prima facie, not sustainable at the stay stage in light of the reasoning in the impugned order. As a result, further pre-deposit of duty was directed and recovery of the remaining demand was stayed pending disposal of the appeal.

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Issues: (i) whether the guest room central system with temperature control feature was classifiable under Chapter Heading 85.37 or Chapter Heading 90.32; and (ii) whether the plea of limitation was sustainable at the stay stage.

Analysis: The order records a prima facie view that, when attached with a thermostat, the system would fall under Chapter Heading 90.32 because temperature control appeared to be its principal function. The plea of time bar was also found, prima facie, not sustainable in view of the Commissioner's reasoning in the impugned order.

Outcome: The applicants were directed to make a further pre-deposit of duty, with recovery of the balance stayed pending disposal of the appeal.

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