Concessional duty on purified terephthalic acid: no 100% purity needed for prima facie waiver of pre-deposit.

Purified terephthalic acid classified under Tariff Heading 2917 36 00 was examined for eligibility to concessional duty under the relevant notification, which did not impose a 100% purity requirement. The Tariff and HSN Explanatory Notes also did not prescribe any purity threshold. On the material available, the product's purified character and market identity supported a prima facie case that 99.8% purity did not exclude notification benefit. The applicants therefore established grounds for complete waiver of pre-deposit and stay of recovery pending appeal.

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Issues: Whether the applicants were entitled to total waiver of pre-deposit and stay of recovery pending appeal on a prima facie showing that purified terephthalic acid classified under Tariff Heading 2917 36 00 was covered by the concessional notification despite having 99.8% purity.

Analysis: The goods were not in dispute as to classification and were already classified under Tariff Heading 2917 36 00. The Tariff and HSN Explanatory Notes did not prescribe any purity requirement, and the notification granting concessional duty to pure terephthalic acid also did not stipulate that the product must be 100% pure. On the material placed, the process indicated purification and the market identity of the product as purified terephthalic acid supported a prima facie case that the notification benefit was not excluded merely because the purity was 99.8%.

Conclusion: The applicants made out a prima facie case for complete waiver of pre-deposit and for stay of recovery during the pendency of the appeal.

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