Pre-deposit waiver for excise penalty declined where goods were cleared without sufficient PLA balance and duty was unpaid.

Removal of excisable goods without sufficient PLA balance was treated as clearance without payment of duty, so the appellant was found not to have established a strong prima facie case for complete waiver of pre-deposit of the penalty amount. The Calcutta High Court decision relied on was held inapplicable on the facts. Full waiver was therefore declined, and the appellant was directed to deposit Rs. 10 lakhs within six weeks.

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Issues: Whether waiver of pre-deposit of the penalty amount should be granted in full in a case where excisable goods were cleared without sufficient balance in the PLA.

Analysis: The order records that the goods had been removed in violation of the excise law by clearing them without sufficient PLA balance, which amounted to clearance without payment of duty. In these circumstances, the appellant was held not to have made out a strong prima facie case for complete waiver of pre-deposit. The reliance placed on a Calcutta High Court decision was found inapplicable on the facts.

Outcome: Full waiver was declined, but the appellant was directed to deposit Rs. 10 lakhs within six weeks.

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