Pre-deposit waiver in steel balls classification dispute declined in full, with only partial stay granted on arguable tariff issues.

In a waiver of pre-deposit application concerning classification of polished steel balls, the Tribunal held that the appellant had not shown a sufficient prima facie case for complete waiver of duty and penalty. The amended tariff covered grinding balls for mills under Heading 73.26, while Note 6 to Chapter 84 supported classification of polished steel balls within prescribed tolerance under Heading 84.82. As the recorded facts showed the balls did not differ from the specified diameter beyond the permitted extent, the demand could not be fully stayed at that stage. Partial relief was granted because the dispute was arguable and the period involved was long.

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Issues: Whether, in the application for waiver of pre-deposit, the appellant made out a prima facie case for complete waiver in respect of the duty and penalty demand arising from classification of polished steel balls.

Analysis: The demand covered a period partly before and partly after the relevant tariff amendment. The amended tariff specifically dealt with grinding balls for mills under Heading 73.26, while Note 6 to Chapter 84 indicated that polished steel balls within the specified tolerance would fall under Heading 84.82. On the facts recorded, the balls were found not to differ from the specified diameter beyond the prescribed extent. The Tribunal therefore found no sufficient basis for setting aside the demand at the stay stage, though the long period involved and the arguable aspect of the classification dispute justified partial relief.

Conclusion: Complete waiver was declined, but the appellant was directed to deposit Rs. 1.50 lakhs and obtained waiver of the remaining duty and penalty amount.

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