Pre-deposit waiver on prima facie classification and limitation grounds, with recovery stayed pending appeal.

At the stay stage, the Tribunal considered whether the appellants should be granted waiver of pre-deposit of duty and penalty and a stay of recovery pending appeal. It found a strong prima facie case on both classification and limitation, and took into account the hardship pleaded by the appellants as well as the substantial duty and penalty at issue. The Tribunal also protected the Revenue by directing an undertaking against alienation of assets. On that basis, pre-deposit was waived and recovery of the duty and penalty was stayed until disposal of the appeal.

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Issues: Whether the appellants were entitled to waiver of pre-deposit of duty and penalty and stay of recovery pending disposal of the appeal.

Analysis: The product was examined only at the stay stage and the conclusion was expressly tentative. On the material then available, the Tribunal found a strong prima facie case on both classification and limitation, noted the substantial duty and penalty involved, and considered the pleaded hardship. To protect the Revenue, an undertaking against alienation of assets was directed.

Conclusion: The requirement of pre-deposit was waived and recovery of the duty and penalty was stayed till disposal of the appeal.

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