Central Excise export compliance and pre-deposit relief: partial waiver granted, but complete waiver refused for procedural non-compliance.

Non-compliance with the prescribed Central Excise export procedure, including removal of excisable goods without prior approval and without duly submitting the required declaration before export, justified denial of complete waiver of pre-deposit. The plea of emergent necessity was not accepted because export activity had already begun before permission was sought, and the cited precedent was distinguished on those facts. Partial relief was nevertheless granted because the appellants were a public sector undertaking and had earned foreign exchange: the Tribunal directed a pre-deposit of Rs. 1 crore, while waiving and staying the balance duty and the entire penalty pending appeal, subject to compliance.

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Issues: Whether the appellants were entitled to complete waiver of pre-deposit of the duty and penalty demanded, pending disposal of the appeal.

Analysis: The demand arose from export of excisable goods without following the prescribed Central Excise export procedure and without prior approval or proper submission of the relevant removal documents. The record indicated that export activity had commenced even before the request for permission was made, and the plea of emergent necessity was not accepted as sufficient to explain the non-compliance. The cited precedent was distinguished on facts because, in the present matter, the prescribed declaration was not duly submitted before export and the goods were removed without payment of duty. At the same time, the appellants were a public sector undertaking and had earned foreign exchange, which weighed in favour of granting partial relief.

Conclusion: Complete waiver was declined. The appellants were directed to pre-deposit Rs. 1 crore, and the balance of duty and the entire penalty were waived and stayed pending appeal, subject to compliance with the deposit direction.

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