Prima facie classification of Jaljeera as packed masala justified waiver of pre-deposit and stay of demand.

CESTAT found that Jaljeera and Hazmi, on the ingredients placed before it, prima facie appeared to be mixtures of ground spices packed for sale and therefore classifiable as packed masala under Chapter 9. Relying on the Supreme Court's treatment of Jaljeera in the cited decision, the Tribunal held that the appellant had shown a strong prima facie case. That prima facie view justified waiver of the pre-deposit condition at the stay stage, because immediate deposit would cause hardship pending disposal of the appeal. The demand, interest and penalty were stayed until the appeal was decided.

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Issues: Whether the appellant made out a prima facie case for waiver of pre-deposit in respect of the excise duty, interest and penalty demand, and whether Jaljeera and Hazmi were prima facie classifiable as packed masala under Chapter 9 of the Central Excise Tariff Act, 1985.

Analysis: The Tribunal noted that the ingredients of the products, as placed before it, prima facie indicated that they were mixtures of ground spices packed for sale. On that basis, and in light of the Supreme Court's treatment of Jaljeera as packed masala in the cited decision, the Tribunal held that the appellant had shown a strong prima facie case. That prima facie view was sufficient at the stay stage to justify dispensing with the requirement of pre-deposit, since insistence on immediate deposit would cause hardship pending disposal of the appeal.

Conclusion: The appellant was entitled to waiver of the condition of pre-deposit, and the demand, interest and penalty were stayed till disposal of the appeal.

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