Classification and exemption dispute over pulp-based fruit juices led to waiver of pre-deposit and stay of recovery.

Pulp-based fruit juices were disputed as classifiable under heading 22.02 as non-alcoholic beverages, and the Tribunal noted a prima facie case that, even on that classification, the goods were exempt under Notification No. 2/94 for the relevant period and subject to nil duty thereafter. The refusal to consider exemption was recorded as based on the exemption not being mentioned in the show cause notice. On those prima facie grounds, the Tribunal waived pre-deposit of the duty demand and equal penalty, stayed recovery, and kept the confiscation order in abeyance pending final hearing.

---

---

Issues: Whether the pulp-based fruit juices were classifiable under heading 22.02 as non-alcoholic beverages; whether, assuming such classification, they were prima facie exempt from duty under Notification No. 2/94 until February 1996 and thereafter liable only to nil rate of duty; and whether, on such considerations, pre-deposit and recovery should be stayed.

Analysis: The order records that the classification adopted by the Commissioner was under challenge, and that even on the assumed classification the goods were stated to be exempt from duty under Notification No. 2/94 for the relevant period, with nil rate of duty thereafter. The refusal to consider exemption was noted to rest on the ground that it had not been mentioned in the show cause notice. On these prima facie considerations, the Tribunal directed waiver of deposit of the duty demand and equal penalty, stayed recovery, and kept the confiscation order in abeyance.

Outcome: Interim relief granted by waiving pre-deposit, staying recovery, and keeping confiscation in abeyance; the appeal was directed to be listed for final hearing along with connected appeals.

---