Pre-deposit waiver in brick classification dispute granted after prima facie doubt over fly ash brick identity.

In a stay application arising from a classification dispute over sand lime bricks and fly ash bricks, the Tribunal found no prima facie material establishing that the goods were fly ash bricks, as no conformity test had been conducted and the ash used was wet pond ash containing moisture. It also accepted that the appellant had a tenable prima facie case that the goods were sand lime bricks, while noting that duty would still be payable at 1% from 1/3/11 on that basis. On the admitted liability, the Tribunal treated the stated amount as sufficient compliance with the pre-deposit requirement and granted waiver of the balance pre-deposit and stay of recovery.

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Issues: Whether the appellant was entitled to waiver of pre-deposit of the duty demand, interest and penalty pending appeal.

Analysis: The appeal arose from a classification dispute between sand lime bricks and fly ash bricks. At the stay stage, the Tribunal found that the record did not establish, on a prima facie basis, that the goods were fly ash bricks, since no test had been carried out to show conformity with the fly ash brick standard and the ash used was wet pond ash containing moisture. The Tribunal also noted that the appellant had a tenable prima facie plea that the bricks remained sand lime bricks, while observing that even on that basis duty was payable at 1% from 1/3/11. In view of the appellant's admitted liability to the extent of about Rs. 3.10 lakhs, the Tribunal considered that amount sufficient for compliance with the pre-deposit requirement under the governing provision.

Conclusion: The appellant was granted waiver of pre-deposit and stay of recovery on depositing Rs. 3,10,000 within the stipulated time.

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