Prima facie classification and limitation case justified conditional waiver of pre-deposit and stay of recovery.

In a pre-deposit waiver request, a strong prima facie case on classification and limitation justified conditional relief. The product was found, at least provisionally, not to fall under either rival tariff heading, and earlier approved classification lists supported the appellant's limitation plea. On the available material, non-disclosure of the synthetic surface active agent was not treated as suppression, and the advertisements produced were considered insufficient by themselves to displace the appellant's case at the interim stage. Partial waiver of pre-deposit was therefore granted subject to a deposit of Rs. 25 lakhs, with recovery of the balance stayed and release of the detained goods ordered.

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Issues: Whether, in an application for waiver of pre-deposit, the appellant made out a prima facie case on classification and limitation, and whether the balance duty and penalty should be secured by a partial deposit.

Analysis: The product was held, at least prima facie, not to fall under the rival tariff headings pressed by the parties. The order also recorded a prima facie case on limitation, noting that earlier classification lists had been approved and that non-disclosure of the synthetic surface active agent did not, on the material then available, amount to suppression. On that basis, the advertisements produced were treated as insufficient by themselves to conclude classification against the appellant at the interim stage.

Conclusion: Partial waiver of pre-deposit was granted on a condition of depositing Rs. 25 lakhs, with recovery of the balance stayed and release of the detained goods ordered.

Ratio Decidendi: At the interim stage, a strong prima facie case on classification and limitation can justify conditional waiver of pre-deposit and stay of recovery.

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