Prima facie manufacture from breaking barges supported classification of waste scrap and a partial pre-deposit with stay.

Breaking up barges into waste and scrap was treated by the Tribunal as prima facie manufacture, and the resulting waste and scrap was held prima facie not to escape classification under Heading 7215.00. On that basis, the appellants were directed to make a partial pre-deposit while the balance duty and penalty were waived during the pendency of the appeal, with recovery stayed subject to compliance.

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Issues: (i) Whether the activity of breaking up barges into waste and scrap was prima facie manufacture; (ii) whether the resulting waste and scrap was prima facie classifiable under Heading 7215.00; (iii) whether the appellants should be directed to make a pre-deposit and be granted waiver of the balance during the pendency of the appeal.

Analysis: The Tribunal recorded a prima facie view that breaking of barges constituted manufacture and that the plea against classification of the resultant waste and scrap under Heading 7215.00 was not acceptable. On that basis, and in the circumstances of the case, a partial pre-deposit was directed with waiver of the balance and stay of recovery during the appeal.

Outcome: The appellants were directed to deposit Rs. 75,000 towards duty, with waiver of the balance duty and penalty and stay of recovery subject to compliance.

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