Pre-deposit waiver in doubled yarn duty dispute granted partly after prima facie finding of duty liability

Waiver of pre-deposit in a dispute over duty on doubled yarn of polyester and cotton was considered on a prima facie basis. The benefit of Notification No. 4/97 was found unavailable, and the absence of a specific tariff heading for the yarn composition did not by itself negate duty liability. As the chapter note treated doubling of yarn as manufacture, the tribunal found sufficient basis to require a partial deposit. Partial waiver of pre-deposit was granted, the applicant was directed to deposit Rs. 40,000, and recovery of the balance duty was stayed.

---

---

Issues: Whether waiver of pre-deposit and stay of recovery could be granted in a dispute concerning duty demand on doubled yarn composed of polyester and cotton.

Analysis: The application was considered on a prima facie basis. The benefit of Notification No. 4/97 was not available, and the absence of a specific heading for the yarn composition did not by itself establish that no duty was payable. The chapter note treated doubling of yarn as manufacture, which supported the existence of a duty liability sufficient to require a partial deposit.

Conclusion: Partial waiver of pre-deposit was granted. The applicant was directed to deposit Rs. 40,000, and recovery of the balance duty was stayed.

---