Intermediate product classification under Chapter 30 supported waiver of pre-deposit and interim relief against confiscation.

GHANA was treated as a prima facie intermediate product used in the manufacture of Ayurvedic medicaments, with earlier declarations, factory visits and prior correspondence supporting the departmental knowledge of its nature. On that material, the product was viewed as falling under Chapter 30 rather than as a separate final product attracting the impugned duty demand. As a result, waiver of pre-deposit of duty and penalty was justified at the interim stage, and relief was also granted by keeping the confiscation order against plant and machinery in abeyance.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit of duty and penalty, and for interim relief against confiscation, on the footing that GHANA was an intermediate product used in the manufacture of Ayurvedic medicaments classifiable under Chapter 30.

Analysis: The application turned on the nature of GHANA as an intermediate product disclosed in earlier declarations and known to the departmental through factory visits and prior correspondence. On the materials then available, the goods were viewed as prima facie falling under Chapter 30 rather than being treated as a separate final product attracting the duty demand in the manner adopted in the impugned order. In that setting, insistence on pre-deposit was held unwarranted at the stage of hearing the appeal on merits, and the confiscation order relating to plant and machinery was also required to be kept in abeyance for the interim stage.

Conclusion: The appellant was held entitled to waiver of pre-deposit of duty and penalty, and interim relief was granted by lifting the confiscation order as to plant and machinery.

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