Statutory tariff definitions govern coal classification, while interim stay may be limited by prima facie demand and balance of convenience.

Where a tariff entry is defined by specific statutory parameters, classification follows the Chapter Note definition rather than commercial or trade parlance; on that basis, imported coal was treated prima facie as bituminous coal under CTH 2701.12. At the interim stage, complete waiver of pre-deposit was declined because the demand was considered prima facie sustainable, subject to adjustment for the concessional notification benefit applicable to Indonesian origin coal. In the absence of pleaded financial hardship, the balance of convenience favoured the Revenue, so conditional stay of recovery was granted only on compliance with the ordered deposit.

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Issues: (i) Whether the imported coal was, prima facie, classifiable as bituminous coal under CTH 2701.12 on the basis of the Chapter Note definition, notwithstanding its description in commercial parlance. (ii) Whether, at the interim stage, the appellant was entitled to complete waiver of pre-deposit and stay of recovery, including consideration of the concessional notification benefit for Indonesian origin coal.

Issue (i): Whether the imported coal was, prima facie, classifiable as bituminous coal under CTH 2701.12 on the basis of the Chapter Note definition, notwithstanding its description in commercial parlance.

Analysis: Sub-heading Note 2 to Chapter 27 defines bituminous coal by reference to specified volatile matter and calorific value. Where the goods satisfy that definition, classification follows the tariff description, even if the goods are known differently in trade or commercial parlance. The settled rule is that a statutory definition controls the meaning of the expression used in the enactment. The prior tribunal view classifying similar goods under the same heading was followed as a matter of discipline at the interim stage.

Conclusion: The coal was held, prima facie, to merit classification under CTH 2701.12 as bituminous coal.

Issue (ii): Whether, at the interim stage, the appellant was entitled to complete waiver of pre-deposit and stay of recovery, including consideration of the concessional notification benefit for Indonesian origin coal.

Analysis: The demand was treated as prima facie sustainable, subject to reduction for the benefit under the applicable customs notification for Indonesian origin coal. In the absence of pleaded financial hardship, the balance of convenience was found to favour the Revenue. The estimated concession was taken into account while fixing the amount of pre-deposit.

Conclusion: The appellant was directed to make a substantial pre-deposit, and only on compliance would the balance be waived and recovery stayed during the appeal.

Final Conclusion: The interim relief was limited, the classification issue was treated against the appellant at the prima facie stage, and conditional stay was granted only upon deposit of the amount ordered.

Ratio Decidendi: Where a tariff entry is defined by explicit statutory parameters, classification is governed by that definition rather than by commercial or trade understanding, and interim relief may be confined by the prima facie sustainability of the demand and the balance of convenience.

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