Classification under the tariff and pre-deposit waiver turned on a Board circular; matter remanded for fresh consideration.

A Board circular clarified the classification of bodies built on duty-paid chassis by reference to the relevant chapter note and judgment, and the Tribunal held that the circular had to be considered. As the Commissioner (Appeals) had not applied that circular, the Tribunal took a prima facie view that the goods would fall under Heading 8702 rather than 8707. On that basis, it found pre-deposit unwarranted, set aside the impugned order, and remanded the matter for fresh decision on merits without insisting on pre-deposit.

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Issues: Whether the demand could be sustained without giving effect to the Board circular on classification, and whether the requirement of pre-deposit under Section 35F should be waived with remand of the matter for fresh consideration.

Analysis: The Board circular clarified the classification of bodies built on duty-paid chassis in the light of the relevant chapter note and the cited judgment. Since the Commissioner (Appeals) had not considered that circular, the Tribunal formed a prima facie view that the circular applied to the facts and that the goods would fall under Heading 8702 rather than 8707. In that situation, insistence on pre-deposit was found unwarranted and the matter required reconsideration on merits.

Conclusion: Waiver of pre-deposit was granted and the impugned order was set aside. The matter was remanded to the Commissioner (Appeals) for fresh decision in the light of the Board circular without insisting on pre-deposit.

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