Time-bar and absence of suppression supported stay of duty recovery in a classification dispute over transformer coils and copper strips.

Stay against recovery of duty was sought on the ground that the demand was prima facie time-barred and that no suppression was shown. The Tribunal noted that the show cause notice covered an earlier period, while the clearances had been made under approved classification lists and reflected in RT-12 returns, which supported the plea that the extended limitation period may not apply. On compliance with a condition to furnish a personal bond covering the duty amount within the stipulated time, stay and waiver of recovery of the duty demand were granted.

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Issues: Whether a stay against recovery of the duty demand should be granted in view of the prima facie plea of time bar and absence of suppression.

Analysis: The appeal related to duty demands arising from alleged misclassification of transformer coils and suppression in relation to copper strip clearances. The Tribunal noted the plea that the show cause notice covered an earlier period and that the clearances had been made under approved classification lists and RT-12 returns, supporting the contention that the demands were prima facie time-barred and that extended limitation may not be attracted.

Outcome: The applicants were directed to furnish a personal bond covering the duty amounts within the stipulated time, and upon compliance, stay and waiver of recovery of the duty amount were granted.

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