Prima facie case warranted waiver of pre-deposit and remand for fresh merits review in a classification dispute.

A strong prima facie case justified waiver of pre-deposit and stay of recovery where the record suggested unresolved questions on classification of the re-imported product. The appellate record indicated that the BIS flash-point requirement of 35 C had not been adequately addressed, and the rejection of the independent tank test report was not satisfactorily explained. Because the merits had not been finally adjudicated, the matter was remanded to the appellate authority for fresh consideration without insisting on pre-deposit. No final finding was recorded on the substantive classification dispute.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit and stay of recovery, and whether the matter required remand for fresh consideration on merits.

Analysis: Classification of the re-imported product as HSD was not finally determined, but the materials on record showed that the applicable BIS specification required a minimum flash point of 35 C, while the lower authorities had not explained why a 0.5 C variation could be ignored. The rejection of the independent test report from the ship's tanks was also found unsatisfactory, particularly when a substantial part of the cargo had been returned by the buyer and the available evidence suggested that only some tanks failed the relevant test. On this basis, the appellant established a strong prima facie case. Since the appellate authority had not decided the dispute on merits, the matter required fresh consideration.

Conclusion: The requirement of pre-deposit was waived, stay against recovery was granted, and the matter was remanded to the appellate authority for decision on merits without insisting on pre-deposit.

Final Conclusion: The appellant obtained interim relief and a remand for de novo consideration, but no final finding was recorded on the substantive classification dispute.

Ratio Decidendi: Where the record discloses a strong prima facie case and the merits have not been adjudicated, pre-deposit may be waived and the appeal remanded for fresh consideration without insisting on deposit.

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