Classification dispute and prior departmental knowledge justified waiver of pre-deposit and stay of recovery pending appeal.

A classification dispute supported waiver of pre-deposit and stay of recovery during appeal because the record showed prior departmental scrutiny, approval of the classification list, and departmental knowledge of the product's composition and related clearances. Those facts created a strong prima facie case for interim relief, and the plea that extended limitation could not be invoked further supported waiver of duty and penalty deposit pending appeal.

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Issues: Whether pre-deposit of the confirmed duty and imposed penalty should be waived and recovery stayed during the appeal proceedings.

Analysis: The product's classification dispute raised a strong prima facie case, as the record showed prior departmental scrutiny, approval of the classification list, and the department's knowledge of the product's composition and related clearances. In these circumstances, the plea that extended limitation could not be invoked also supported interim relief.

Conclusion: The pre-deposit of duty and penalty was waived and recovery was stayed during the pendency of the appeal, in favour of the appellant.

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