Pre-deposit waiver granted in a classification and exemption dispute over solenoid valves, with recovery stayed.

A prima facie case was found for waiver of pre-deposit where the dispute concerned the classification of solenoid valves and the denial of exemption based on alleged use of a brand or trade name. The interim relief analysis also considered the valuation stated in the show cause notice. On these facts, the duty and penalty deposit was waived and recovery was stayed pending further proceedings.

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Issues: Whether the appellant was required to deposit the duty and penalty demanded under Section 11AC, and whether a prima facie case was made out for waiver of pre-deposit in view of the classification dispute and the claim to exemption under the relevant notifications.

Analysis: The application was considered on the basis of the proposed classification of the solenoid valves and the challenge to denial of exemption on the ground of use of a brand or trade name. The valuation shown in the show cause notice was also taken into account for the purpose of interim relief. On these materials, a prima facie case was found in favour of the appellant for waiver.

Outcome: Deposit of duty and penalty was waived and recovery was stayed.

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