Prima facie exemption entitlement under tariff classification supported waiver of pre-deposit and stay of recovery

Entitlement to Notification No. 10/2006-C.E. was examined for goods classified under tariff item 84137010, which covers power-driven pumps primarily designed for handling water. The Revenue did not dispute the classification but denied the exemption on the basis that the pressure boosting system comprised more than a pump and included additional components. On the record available at the interim stage, the Tribunal found that the established classification supported the appellant's claim and that a strong prima facie case had been shown. Waiver of pre-deposit and stay of recovery were therefore granted pending disposal of the appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit of duty, interest and penalty, and for stay of recovery, in view of the dispute regarding entitlement to Notification No. 10/2006-C.E. dated 01.03.2006 for goods classified under tariff item 84137010.

Analysis: The appellant's goods were classified under tariff item 84137010, which covers power driven pumps primarily designed for handling water. The Revenue did not dispute the classification, but denied the notification benefit on the view that the pressure boosting system comprised more than a pump and included other components. On the materials before it, the Tribunal found that the classification itself supported the appellant's claim and that a strong prima facie case had been shown for the purpose of interim relief.

Conclusion: The appellant was entitled to waiver of pre-deposit and stay of recovery pending hearing of the appeal.

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