Prima facie tariff classification under Notification No. 37/94-C.E. supported waiver of pre-deposit and stay of recovery.

Ceramic candles classified under Heading 69.11 were treated as prima facie covered by Serial No. 13 of Notification No. 37/94-C.E., which applied to goods under Chapter Headings 69.01 to 69.11 other than those listed in Serial Nos. 1 to 12. On that basis, the assessee established a prima facie case that the applicable rate was 20% ad valorem rather than 30% ad valorem. The demand for differential duty, interest and penalty was therefore not required to be secured by pre-deposit at that stage, and recovery was stayed pending appeal.

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Issues: Whether, for the purpose of waiver of pre-deposit, the goods known as ceramic candles were prima facie covered by Serial No. 13 of Notification No. 37/94-C.E. dated 1-3-1994 so as to attract duty at 20% ad valorem, rather than Serial No. 12 attracting duty at 30% ad valorem.

Analysis: The goods were not in dispute as falling under Heading 69.11. Serial No. 13 covered goods falling under Chapter Heading 69.01 to 69.11 other than those specified against Serial Nos. 1 to 12. Since the goods were covered by the broader description in Serial No. 13, the assessee made out a prima facie case that the applicable rate was 20% ad valorem. On that basis, the demand of differential duty, interest and penalty was not required to be secured by pre-deposit at that stage.

Conclusion: The application for waiver of pre-deposit was allowed and recovery of the differential duty, interest and penalty was stayed pending appeal.

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