Pre-deposit waiver in classification dispute granted on prima facie merits, subject to further deposit and recovery stay.

In a classification dispute, interim relief was considered on the basis of prima facie merits and financial hardship. The goods were treated as prima facie preparations containing acrylic polymer, possibly used as finishing and fixing agents in the textile industry, bringing them within Heading 38.09 for interlocutory purposes. No final classification was decided. The applicant was required to deposit a further sum within two months; on such deposit, the balance pre-deposit was waived and recovery stayed.

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Issues: Whether waiver of the balance pre-deposit and stay of recovery should be granted in a classification dispute, having regard to the prima facie merits and the applicant's financial hardship.

Analysis: The goods were prima facie shown to be preparations containing acrylic polymer, with possible use as finishing and fixing agents in the textile industry. The entry under Heading 38.09 was treated as covering such preparations, and the order also took into account the applicant's financial condition. The matter was dealt with at the interlocutory stage and no final adjudication on classification was made.

Conclusion: The applicant was directed to deposit a further sum of Rs. 2 lakhs within two months, and on such deposit the balance pre-deposit was waived and recovery stayed.

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