Classification dispute over calcined pyrophyllite led to duty pre-deposit, while penalty pre-deposit was stayed pending hearing.

In a stay application arising from a classification dispute over calcined pyrophyllite, the Tribunal treated the classification issue and the Department's interpretative rule as matters requiring examination at regular hearing. It required pre-deposit of the entire confirmed duty, while granting stay against pre-deposit of the penalty. The appellant's stated willingness to deposit the duty, subject to issuance of a duty payment certificate for eligible supplies, formed part of the basis for the interim relief. Upon compliance, the Revenue was directed to issue the duty payment certificate.

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Issues: Whether, in a stay application arising from a classification dispute, the appellant should be directed to pre-deposit the confirmed duty amount and whether the penalty demand should be stayed.

Analysis: The classification of calcined pyrophyllite was treated as an arguable question requiring detailed examination at regular hearing, including the applicability of the interpretative rule relied upon by the Department. The appellant also indicated willingness to deposit the duty amount subject to issuance of duty payment certificate for eligible supplies. On that basis, the Tribunal required pre-deposit of the entire duty confirmed in the order while granting relief against pre-deposit of penalty.

Conclusion: The appellant was directed to deposit the duty amount, the penalty was stayed, and the Revenue was directed to issue the duty payment certificate upon compliance.

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