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Issues:
Classification of imported live animals as 'Zoo' under tariff heading 9908, re-classification under tariff heading 0106.00, imposition of duty and penalty, financial hardship of the appellants. Analysis: The appellants imported live animals like dolphins and sealions and declared themselves as a 'Zoo' seeking classification under tariff heading 9908 at NIL rate of duty. However, the department argued that the appellants did not meet the criteria of being termed a zoo as per the Wild Life (Protection) Act, 1972, and the clarification from the Ministry of Environment and Forest. Consequently, the department re-classified the imported animals under tariff heading 0106.00, attracting duty rates of 65% for sealions and 45% for dolphins. The goods were assessed, duty demand confirmed, and a penalty imposed on the appellant company's Chairman and Managing Director. During the hearing, the counsel for the appellants contended that the term 'Zoo' should be interpreted broadly and not as per the department's narrow interpretation. The appellants presented numerous documents to support their case and highlighted their significant financial losses, amounting to Rs. 13.00 crores with a daily loss of Rs. 80,000. The counsel argued that the appellants were unable to pre-deposit any amount and requested either an absolute waiver or expressed concerns about severe financial hardship if not granted. On the other hand, the SDR representing the department maintained that the appellants did not qualify as a 'zoo' under the Wild Life (Protection) Act and the Ministry's clarification. She argued that the appellants were engaged in a commercial amusement activity rather than operating as a zoo under the Act. Therefore, she asserted that the appellants should not be classified at a NIL rate of duty but as wild animals, subject to appropriate tariff. After careful consideration, the Tribunal found it challenging to conclude definitively at that stage that the appellants operated a zoo, especially in light of the Ministry's clarification. However, considering the financial hardship claimed by the appellants and the evidence of substantial losses presented, the Tribunal acknowledged the potential hardship the appellants would face. Consequently, the Tribunal directed the appellants to pre-deposit an amount of Rs. 4.50 lakhs within three months, waiving the remaining duty and penalty amounts and staying the recovery. The appeal was scheduled for an expedited hearing on a specified date, subject to compliance with the deposit requirement.
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