Pre-deposit modification refused where CFL classification dispute required factual examination at the interim stage.

CESTAT Chennai declined to modify a stay order requiring pre-deposit, holding that the dispute over whether the imported goods were CFL without choke could not be conclusively determined at the interim stage. The Tribunal noted that the applicable notification and Board circular covered both CFL with choke and without choke, and that resolution depended on examination of the catalogue and other factual material. Relying on the earlier stay order, it found no basis to reduce the pre-deposit, but extended the time for compliance by six weeks.

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Issues: Whether the pre-deposit directed in the stay order should be modified on the ground that the imported goods were allegedly CFL without choke and that the duty demand was not sustainable at the interim stage.

Analysis: The application sought modification of the earlier stay direction requiring a pre-deposit of Rs. 2.50 crores. The Tribunal noted that the disputed goods were described as CFL products, that the notification itself contemplated different duty treatment for CFL with choke and without choke, and that the Board circular referred to both categories. It further held that the classification dispute turned on examination of the catalogue and other factual material, which could not be conclusively decided while dealing with a stay-modification request. The Tribunal also relied on the earlier stay order and found no merit in the plea for reduction of the pre-deposit.

Conclusion: The request for modification of the pre-deposit was rejected, though the time for compliance was extended by six weeks.

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