Tariff classification of synthetic casting tape under medical-use heading supports only partial pre-deposit waiver in interim relief.

Synthetic Casting Tape was treated as prima facie classifiable under Heading 3005 rather than Heading 9021 because the goods were viewed as bandages or articles for medical use, consistent with the HSN note to Heading 3005 and earlier decisions on similar casting tapes. For interim relief, the plea of limitation and absence of suppression was relevant, but the prima facie merits did not justify a full waiver of pre-deposit. Partial relief was granted instead, with a pre-deposit directed and recovery of the balance stayed on compliance.

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Issues: (i) Whether Synthetic Casting Tape is prima facie classifiable under Heading No.3005 or Heading No.9021 of the Customs Tariff Act, 1975 for the purpose of interim relief. (ii) Whether the applicant had made out a case for waiver of pre-deposit in view of the plea of limitation and absence of suppression.

Issue (i): Classification depended on whether the imported goods were bandages/articles for medical use falling under Heading No.3005 or orthopedic appliances under Heading No.9021. The HSN note to Heading 3005 covered bandages not impregnated or coated with pharmaceutical substances, and the Tribunal relied on earlier decisions holding similar casting tapes to be articles akin to heading 3005 rather than orthopedic appliances.

Conclusion: The goods were held prima facie classifiable under Heading No.3005, not Heading No.9021.

Issue (ii): The plea that mere reclassification could not by itself establish suppression was accepted to the extent relevant for interim relief, but the earlier decisions on classification and the prima facie view on merits weighed against full waiver. The balance of convenience justified only partial relief.

Conclusion: Full waiver was declined and a pre-deposit of Rs. 4,00,000 was directed, with stay on recovery of the balance upon compliance.

Final Conclusion: Interim relief was granted only in part, with partial waiver of pre-deposit and stay on the remaining demand pending disposal of the appeal.

Ratio Decidendi: For interim relief in tariff classification disputes, a prima facie conclusion on the more appropriate heading may justify partial waiver rather than complete stay, especially where prior precedent supports the departmental classification.

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