Prima facie unsustainable classification of motor vehicle covers justified waiver of pre-deposit and stay of recovery.

For purposes of waiver of pre-deposit, loose covers for motor vehicles and canopy were found prima facie not classifiable as parts and accessories of motor vehicles under Chapter 87. The Tribunal treated the Chapter 87 classification as prima facie unsustainable at the interim stage and, on that basis, granted waiver of pre-deposit and stayed recovery pending disposal of the appeal.

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Issues: Whether, for purposes of waiver of pre-deposit, the goods described as loose covers for motor vehicles and canopy were prima facie classifiable under Chapter 87 as parts and accessories of motor vehicles, or under Chapter 63 as tarpaulin and canvas cloth.

Analysis: The demand had been confirmed on the footing that the goods fell under Chapter 87. At the stage of considering waiver of pre-deposit, the Tribunal found prima facie that such goods could not be treated as parts and accessories of motor vehicles. On that basis, the classification adopted in Chapter 87 was held to be prima facie inappropriate for the interim stage, warranting protection against recovery pending appeal.

Conclusion: The waiver of pre-deposit was granted and recovery of the disputed amount was stayed pending disposal of the appeal.

Ratio Decidendi: Where the impugned classification appears prima facie unsustainable, pre-deposit may be waived and recovery stayed pending appeal.

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