ORDER
Jyoti Balasundaram, Member (J).
1. The application for waiver of pre-deposit of duty of Rs. 2,74,863.25 confirmed against the applicants herein as a result of classifying the product in dispute viz. Textile padding solutions under Central Excise Tariff Sub-heading 3909.10 as against the assessees’ claim for classification under-Heading 3809.00 and a penalty of Rs. 20,000/-imposed upon them, arises out of the order of the Commissioner of Central Excise (Appeals), Mumbai. The period of dispute is 1-3-97 to 31-5-98.
2. We have heard both sides. We find that the classification has been done by the department on the basis of chemical analysis of the product which has been found to be “aqueous solution of condensation of product of urea/organic amino compound and aldehyde” and has been found to be pre-polymers having characteristics of other amino acids. Therefore, it cannot be said that a strong prima facie case for total waiver has been made out by the applicants. We, therefore, direct pre-deposit of Rs. 1,35,000/- (Rupees One lakh thirty-five thousand only) towards the duty within a period of eight weeks from today and on such deposit, pre-deposit of balance of duty and penalty shall stand waived and recovery thereof stayed pending the appeal. Failure to comply with this direction shall result in vacation of stay and dismissal of appeal without prior notice.
3. Compliance to be reported on 12-11-2003.