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Issues:
Application for waiver of pre-deposit amount and stay of operation of the Impugned Order under Section 129E of the Customs Act, 1962. Analysis: The appellant imported a consignment of soluble Seaweed Extract Powder and sought its classification under CTH 1302.19. A classification dispute arose, leading to the payment of differential duty as revenue deposit. The Dy. Commissioner held the goods are classifiable under CTH 1212.00, but the Commissioner (Appeals) ruled in favor of the appellant, classifying the goods under CTH 1302.19. The refund order was reviewed by the Commissioner of Customs (Export) applying the doctrine of unjust enrichment, leading to an appeal filed by the Assistant Commissioner of Customs. The Commissioner (Appeals) set aside the Order-in-Original, emphasizing the application of unjust enrichment in refund cases. The appellant appealed to the Tribunal seeking a stay of the operation of the impugned order. The Department argued that the impugned order should not be stayed to safeguard revenue interests, citing the decision of the Supreme Court in a relevant case. The appellant relied on a case law to argue against the application of the principle of unjust enrichment to refund cases, citing Supreme Court decisions supporting their position. Upon examination, it was determined that the amount in deposit by the appellants during the classification dispute could be treated as a Security Deposit or Pre-deposit. The applicability of the doctrine of unjust enrichment to such a deposit was debated, referencing the Supreme Court's decision in a specific case. The Tribunal found a prima facie case and balance of convenience in favor of the appellants, granting a stay of the operation of the order pending appeal disposal. The Tribunal waived the pre-deposit and allowed the application for stay, scheduling the appeal for regular hearing within 2 months.
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