Pre-deposit waiver in classification dispute refused where records cast doubt on exemption claim and product description.

In an appeal seeking waiver of pre-deposit on the classification of fabricated bins and claim to exemption, the Tribunal found that the record disclosed a factual discrepancy in the description of the goods and indications of separate invoicing for different purposes, including to obtain the benefit of Notification No. 6/2006-CE. Because those facts weakened the applicants' prima facie case on classification and exemption, complete waiver was declined. The Tribunal directed a partial pre-deposit and granted waiver and stay only for the balance during pendency of the appeal.

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Issues: Whether the applicants had made out a prima facie case for complete waiver of pre-deposit in an appeal concerning classification of fabricated bins and entitlement to exemption.

Analysis: The applicants claimed that the goods were special purpose motor vehicle bodies classifiable under sub-heading 8705 90 00, while the Revenue maintained that the goods were only bins classifiable under sub-heading 7309 00 90. On the record, the documents disclosed a factual discrepancy in the description of the goods and suggested that separate invoices were prepared for different purposes, including to claim the benefit of exemption under Notification No. 6/2006-CE. In these circumstances, the Tribunal found that the applicants had not established a strong prima facie case for total waiver of pre-deposit.

Conclusion: Complete waiver was declined, and a partial pre-deposit was directed with waiver and stay only for the balance during pendency of the appeal.

Final Conclusion: Interim relief was granted only to a limited extent, while the appellants were required to make a substantial pre-deposit before the appeal could proceed with protection against recovery for the remaining demand.

Ratio Decidendi: In an appeal seeking waiver of pre-deposit, where the record discloses a factual dispute casting doubt on the claimed classification and exemption, complete waiver may be refused and conditional pre-deposit ordered.

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