ORDER
Jyoti Balasundaram, Member (J)
1. This is an application for waiver of pre-deposit of duty of Rs. 54,55,922/- confirmed and penalty of equal amount imposed upon the applicants herein for the reason that the product Tetmosol Soap manufactured and cleared by them during the period Septembers, 1998 to September, 1999 falls for classification under Chapter sub-heading 3401.19 of CETA, and not under Chapter sub-heading 3401.11 as a medicated soap, as claimed by the applicants.
2. On hearing both sides and noting that it is not in dispute that Tetmosol soap is a medicated soap use for the treatment of the skin infection “scabies”, and also noting that the method of usage is only at the time of bathing, we see prima facie force in the submission of the applicant that the more appropriate classification is under sub-heading 3401.11 as claimed by them. We also note that the Commissioner has noted from the package/literature of Tetmosol soap that ‘it should not be used by patients who have previously reacted badly in any way to the product. Rarely, a rash can occur after using “Tetmosol”, if this occurs stop using the product’. In this view of the matter we hold that a prima facie case for waiver has been made out and hence dispense with pre-deposit of duty and penalty and stay recovery thereof pending the appeal.