Tariff classification of combined refrigerator-freezers controls customs exemption, and foreign origin certificates do not override Indian tariff rules.

Combined refrigerator-freezers fitted with separate external doors are treated as classifiable under tariff heading 8418 10 90 for Indian customs purposes, and a domestic exemption limited to heading 8418 21 00 does not extend to them. The relevant circular supports that classification, while a certificate of origin under a trade agreement does not control tariff classification under Indian law. On pre-deposit, financial hardship is not established where the importer shows substantial cash and bank balances exceeding the disputed duty exposure, so only partial waiver may be justified and the balance can be stayed subject to compliance.

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Issues: (i) Whether combined refrigerator-freezers fitted with separate external doors are classifiable under tariff heading 8418 10 90 and therefore outside the scope of the exemption under Notification No. 85/2004-Cus.; (ii) whether the appellant had made out a case for waiver of pre-deposit on the ground of financial hardship.

Issue (i): Whether combined refrigerator-freezers fitted with separate external doors are classifiable under tariff heading 8418 10 90 and therefore outside the scope of the exemption under Notification No. 85/2004-Cus.

Analysis: The imported goods were accepted to be combined refrigerator-freezers fitted with separate external doors. The tariff entry for combined refrigerator-freezers specifically covered heading 8418 10, while household refrigerators were covered under heading 8418 21 only if they answered the description of that entry. The relevant exemption under Notification No. 85/2004-Cus. extended only to goods falling under 8418 21 00. The Board's circular also clarified that combined refrigerator-freezers with separate external doors merit classification under 8418 10 and are not covered by the exemption. The certificate of origin under the trade agreement did not control customs classification for Indian tariff purposes.

Conclusion: The goods were prima facie classifiable under heading 8418 10 90 and were not prima facie eligible for the exemption under Notification No. 85/2004-Cus.; this point was held against the appellant.

Issue (ii): Whether the appellant had made out a case for waiver of pre-deposit on the ground of financial hardship.

Analysis: The appellant's financial statement showed substantial cash and bank balances, which exceeded the amount of differential duty in dispute. In view of the prima facie classification position and the available funds, undue financial hardship was not established for complete waiver.

Conclusion: Only partial waiver of pre-deposit was granted and the appellant was directed to deposit Rs. 30,00,000.

Final Conclusion: The appeal was not decided on merits at this stage. The tribunal declined complete waiver, required a substantial pre-deposit, and granted stay of recovery of the balance on compliance, leaving the substantive appeal pending.

Ratio Decidendi: For customs exemption tied to a specific tariff heading, classification for Indian customs purposes is determined by the tariff description and the relevant domestic clarification, and a foreign certificate of origin does not override that classification.

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