Liquid paraffin wax classification under Chapter 38.24 received prima facie support, justifying waiver of pre-deposit.

Liquid paraffin wax manufactured in liquid form was treated as prima facie classifiable under Chapter 38.24 rather than Chapter 27.12, because the record showed it was not solid paraffin wax and the Board circular dated 01.08.2011, read with the HSN Explanatory Notes, supported classification of liquid chlorinated paraffins under Chapter 38.24. On that basis, a prima facie case was found for interim relief in the classification dispute, and pre-deposit was waived with recovery stayed 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 in a classification dispute concerning Liquid Paraffin Wax between Chapter 38.24 and Chapter 27.12 of the Central Excise Tariff Act, 1985.

Analysis: The product in dispute was Liquid Paraffin Wax manufactured in liquid form, and the record showed that the product was not solid paraffin wax. The Board circular dated 01.08.2011, read with the HSN Explanatory Notes, indicated that chlorinated paraffins or chloroparaffins in liquid form were classifiable under Chapter 38.24. Since the tariff was aligned with the HSN, the classification under Chapter 38.24 was held to be prima facie supportable for the purposes of interim relief.

Conclusion: The appellant established a prima facie case, and the pre-deposit was waived with recovery stayed till disposal of the appeal.

Final Conclusion: Interim relief was granted to the appellant in the classification dispute, and recovery of the disputed dues remained stayed pending final disposal of the appeal.

Ratio Decidendi: Where the product is shown to be a liquid paraffin formulation and the HSN-based circular supports classification under Chapter 38.24, a prima facie case exists for waiver of pre-deposit in the corresponding classification dispute.

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