Prima facie classification dispute justified waiver of pre-deposit and stay of penalty recovery during proceedings.

On a prima facie view, waiver of pre-deposit and stay of penalty recovery were justified where the goods were described in the bill of entry and invoices as PVC leather belts, while the penalty had been imposed on the basis that they were leather belts. The small amount involved and the existence of valid points for interim protection supported grant of relief. The pre-deposit of the penalty was waived and recovery of the penalty was stayed during the pendency of the proceedings.

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Issues: Whether the applicants were entitled to waiver of pre-deposit and stay of recovery of the penalty during pendency of the proceedings.

Analysis: The goods were described in the bill of entry and invoices as PVC leather belts, while the penalty had been imposed on the footing that they were leather belts. On a prima facie view, the applicants had a good case, the amount involved was small, and valid points were made for interim protection.

Outcome: The pre-deposit of the penalty was waived and recovery of the penalty was stayed during the pendency of the proceedings.

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