Classification of mobile telescopic tower supported exemption and interim stay on a strong prima facie case.

A mobile telescopic tower mounted on a duty-paid chassis was treated, on a prima facie basis, as a special purpose motor vehicle under Heading 8705 rather than as goods classifiable under Chapter 73. That classification supported eligibility for exemption under Notification No. 6/2006-C.E., and the strong prima facie case justified interim protection. The pre-deposit of duty, interest and penalty was waived and recovery stayed pending disposal of the appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery in a dispute concerning classification of a mobile telescopic tower and eligibility for exemption under Notification No. 6/2006-C.E.

Analysis: The chassis on which the telescopic tower was mounted was duty paid and duty had also been paid on the value of the telescopic tower. On a prima facie view, the mobile telescopic tower appeared classifiable as a special purpose motor vehicle under Heading 8705 and not under Chapter 73. If so classified, the goods would be eligible for exemption under Notification No. 6/2006-C.E. The existence of a strong prima facie case justified interim protection.

Conclusion: The requirement of pre-deposit of duty, interest and penalty was waived and recovery was stayed till disposal of the appeal.

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