Pre-deposit waiver in HDPE strip classification dispute limited to partial relief after prima facie Chapter 39 view.

A dispute on the classification of HDPE strips led the Tribunal to take a prima facie view that the departmental circular supported classification under Chapter 39. While the appellant relied on quantification issues and CENVAT credit adjustment, the Tribunal balanced those factors against the classification position and declined complete waiver of pre-deposit. It directed a deposit of Rs. 25,00,000, waived the balance pre-deposit, and stayed recovery of the remaining demand during pendency of the appeals.

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Issues: Whether the appellant was entitled to complete waiver of pre-deposit and stay of recovery pending appeal.

Analysis: The dispute concerned classification of HDPE strips, and the Tribunal formed a prima facie view that the departmental circular supported classification under Chapter 39. At the same time, it noted the appellant's contention regarding quantification and CENVAT credit adjustment. Balancing these considerations, the Tribunal granted only partial relief by directing a deposit of Rs. 25,00,000 and waiving the balance pre-deposit.

Conclusion: Complete waiver was refused, but the appellant was granted partial waiver on depositing Rs. 25,00,000, and recovery of the balance was stayed during pendency of the appeals.

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